Ohio Security Insurance Company is among the latest insurers to face potential class action litigation over its alleged refusal to pay claims for property damage related to the COVID-19 outbreak and subsequent government business closure mandates.
Filed by a Washington dentist, the lawsuit claims business operators such as the plaintiff purchased insurance policies from the defendant to cover losses in the event of a closure or other insured loss. The plaintiff alleges that although his policy included coverage for business income, extra expense, extended business income, and civil authority losses, Ohio Security advised him in a letter dated April 6 that the damage “would not likely be covered.”
According to the case, several orders issued by Washington Governor Jay Inslee in late February prohibited the plaintiff and other healthcare providers from performing non-emergency procedures while the COVID-19 outbreak swept through the state. The plaintiff alleges that although the virus has not been detected at his property, he cannot use the premises for its intended purposes due to government orders. Despite suffering “direct physical loss and/or damage” to his property, the plaintiff’s insurance claim will likely be denied by the defendant, the lawsuit states.
“Upon information and belief,” the complaint reads, “Defendant intends to deny, has denied and/or will deny coverage to Plaintiff and to other similarly situated policyholders.”
ClassAction.org’s coverage of COVID-19 litigation can be found here and over on our Newswire.