Sarku Japan Takes a Stand Against Affiliated FM Insurance’s Bad Faith Conduct


(USA Herald) – The well-known Japanese restaurant chain, Sarku Japan, is not taking Affiliated FM Insurance’s inaction lying down. In a recent lawsuit filed in California federal court, the national chain is alleging that the insurer has failed to investigate its claim for losses related to the COVID-19 pandemic, which they say the company owes coverage for under the communicable disease provision in their policy. The restaurant alleges that the insurance company has been avoiding issuing a coverage determination despite their full cooperation and assistance.

According to an amended complaint filed last Friday, the restaurant provided Affiliated FM with an updated list of their store locations that had positive COVID-19 cases, as well as spreadsheets detailing their estimated business interruption losses and rent continuation expenses. Yet, despite all the evidence and information provided, the insurance company has failed to make a coverage determination, causing the restaurant to feel that they are being “strung along.”