Cheers bar owners file lawsuit against insurance company over coronavirus closure

BOSTON (WHDH) - The owners of Cheers on Beacon Hill, in Faneuil Hall and on Liberty Wharf are suing an insurance company for allegedly refusing to pay insurance claims during the coronavirus pandemic.

The Hampshire House corporation, which owns the bars, filed the lawsuit against Fireman’s Fund Insurance and Allianz Global for business interruption insurance payment, the lawsuit says.

Hampshire House, which employs over 290 restaurant workers, had to close down restaurants and a distribution center in the Boston area when the state ordered a shutdown due to the COVID-19 emergency.

The lawsuit claims that the insurance company is denying insurance loss claims “based on ambiguous, contradictory language.”

Hampshire House estimates over $10 million lost during the pandemic.

“Too many small business owners, restaurant owners, gym owners, hotel owners, and medical providers are staring bankruptcy in the face. This is a survival moment and all options must be on the table,” the company’s attorney Peter Merrigan said.

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