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My client, a restaurant, suffered physical damage (brick through the window) during last summer’s social unrest demonstrations. The restaurant closed for several days to clean up and replace the damage. The claim was turned into the carrier and the carrier paid lost income, but refused to pay for payroll that the restaurant continued to pay employees during the shut down. The policy is ISO based and states that it will pay ACTUAL LOSS of business income you sustain. The carrier is saying that because the restaurant received a PPP loan, the PPP loan is paying for payroll, and the restaurant suffered no loss. We believe the PPP loan (not yet forgiven) has nothing to do with the policy language. Your thoughts?

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