Houston billionaire Tilman Fertitta says his insurance companies should have covered COVID-19-related losses, and two judges agree

Houston billionaire Tilman Fertitta is locked in several legal battles arguing that insurance companies owe businesses coverage for financial losses brought on by the COVID-19 pandemic, and two judges have agreed with him. Earlier this year, several of Fertitta’s commercial businesses – including Landry’s and Golden Nugget – filed two lawsuits in Louisiana against several insurance companies, claiming the losses the businesses incurred from shutting down during the COVID-19 pandemic should have been covered by their insurance. When COVID-19 spread through the United States and local governments imposed lockdowns and social distancing restrictions in early 2020, Fertitta furloughed 45,000 employees and borrowed $300 million to keep Landry’s alive. He then offered furloughed workers takeout meals and put $1 million into a relief fund for their financial support.

In July, two Louisiana state judges issued partial summary judgments in favor of Fertitta’s businesses, finding without trial that the businesses were owed coverage. The insurance companies have appealed to have the case heard in Texas, according to a spokesperson for Fertitta, and have informed general counsel that they intend to appeal in Louisiana as well. Great American Insurance, Lexington Insurance and National Indemnity Company did not respond to a request for comment. Chubb, Axis Surplus Insurance and American Insurance Group declined to comment. In July 2020, the Houston Rockets -- also owned by Fertitta -- sued the team's insurance provider in Rhode Island after the provider refused to cover the losses from games that were canceled due to the pandemic. “The loss of functionality is no less physical than the impact of a property having lost its roof to a tornado or hurricane,” an attorney for the Rockets told The Houston Chronicle at the time. In March of 2021, a judge ruled to split the Rocket's multiple claims into separate trials. The case is still pending.