A Louisiana hotel owner claims Berkshire Hathaway took nearly a year to pay out on a tornado claim, testing state insurance regulations.
Gurunanak LLC filed suit in federal court alleging Berkshire Hathaway Direct Insurance Company waited 317 days to settle a commercial property claim after an April 2024 tornado damaged its Westlake hotel.
The case, filed Oct. 29 in the Western District of Louisiana, centers on whether the Nebraska-based insurer violated Louisiana's claims-handling deadlines - and what penalties it may face if found liable.
According to the filing, trouble began after a tornado struck on April 10, 2024. The hotel owner says it notified Berkshire Hathaway and provided damage estimates and photographs by early May. The insurer sent engineers and building consultants to inspect the property on June 19.
Then, the plaintiff alleges, communications stalled.
By late June, the insurer's senior property claims adjuster said reports were being prepared. A month later, she was still waiting on consultant reports. By September – five months after the storm – no payment had been made, despite the adjuster confirming that leak detection services were no longer needed.
The filing describes unreturned emails and phone calls through the fall. When the building consultant's estimate finally arrived in mid-November, the adjuster told the policyholder the report needed management review. The estimate itself wasn't shared with the hotel owner's attorney until Feb. 4, 2025.
Berkshire Hathaway made its first payment - $306,341 for building replacement costs – on Feb. 21, 2025, according to the suit.
The delay matters under Louisiana law, which requires insurers to begin adjusting property claims within 14 days of notification and to pay or make a settlement offer within 30 days of receiving proof of loss. Louisiana courts have ruled that an adjuster's initial inspection constitutes proof of loss, starting the clock on those deadlines.
Insurers who miss those marks without probable cause face penalties of 50 percent of the amount owed, or $1,000, whichever is greater, plus attorney fees. A separate statute allows for damages up to twice the loss amount, or $5,000, for claims unpaid after 60 days.
The hotel owner is seeking full policy benefits, business income losses, and statutory penalties. The suit also alleges breach of the duty of good faith and fair dealing – a charge that, if proven, could expose the carrier to additional damages.
Berkshire Hathaway Direct Insurance, a subsidiary of Warren Buffett's conglomerate, has not yet responded. The insurer is authorized to write policies in Louisiana and maintains its headquarters in Omaha, Nebraska.
The allegations arrive as bad faith claims litigation remains a concern for commercial insurers operating in Louisiana, where statutes impose penalties designed to encourage prompt claim resolution.
Whether the alleged delays were arbitrary or justified will be for the court to decide. But the timeline outlined in the lawsuit – from spring storm to midwinter payment – illustrates the risks insurers face when claims extend beyond statutory deadlines.
The case is pending in the Western District of Louisiana.
