Coronavirus pandemic
Philadelphia, P.A. — Lawsuits alleging insurance companies and insurance brokers violated the terms of insurance contracts by not paying for losses felt by businesses during the coronavirus pandemic. According to an article appearing in Insurance Business Magazine, a legal services business filed a claim with its insurer claiming losses amounting to more than $50,000.00 because of the COVID-19 pandemic. The insurance company denied the claim. The insurance company argues that it is not responsible for paying the plaintiff an amount under the insurance contract because pandemics are excluded by the terms of the agreement. The plaintiffs counter that argument by claiming that the insurance contract’s business interruption clause should cover its losses.
The plaintiff filed a lawsuit asking the court to order the insurance company and the insurance company’s broker $50,000.00, plus damages, costs, and legal fees. The legal services firm, which is the plaintiff in the case, said it lost at least $50,000.00 when governments ordered the nonessential business to close. The plaintiff also argues that the refusal of the insurance company to cover the business’ loss is a violation of the insurance contract.
The insurance company explained to its insured that a clause in the insurance contract allowed the insurance company to avoid covering the plaintiff’s losses. The insurance company said that one particular clause does not apply to the situation that we are facing as a nation right now.
The plaintiff’s executives have a contrary view. The executives say that the insurance broker and insurance agency from which the insurance contract in issue was purchased failed to explain that the insurance contract would not cover losses suffered during the pandemic or because governmental orders forced businesses to close. The plaintiff’s business is inextricably linked to the court system, which has been shut down nationwide except for emergency matters only. Closing of the courts led to the business interruption and loss of tens of thousands of dollars, according to the plaintiff’s complaint.
New York | Brooklyn | Queens | Long Island | New Jersey | Florida
Call us at: 1-800-YOURLAWYER (800-968-7529) | Schedule your free consultation
Have you been denied a business interruption insurance claim?
Click To Get A Free Case Review
