A proposed class action alleges Valley Forge Insurance Company has wrongfully denied a Washington orthodontic practice’s COVID-19-related business loss claim.
According to the suit, the plaintiff’s insurance policy, which included business income, extra expense, extended business income, and civil authority coverage, promised to pay for “direct physical loss of or physical damage to” the covered property. The case contends that the plaintiff suffered covered losses after Washington Governor Jay Inslee issued in March 2019 several orders closing all non-essential businesses and prohibiting non-urgent medical procedures.
“By order of Governor Inslee, orthodontists including Plaintiff were prohibited from providing services but for urgent and emergency procedures,” the complaint states, noting that the business could not use its property for its intended purpose.
The plaintiff argues that although its losses amid the pandemic should have been covered under its Valley Forge property insurance policy, the defendant denied its claim, stating in a May 2020 letter that there was “no indication that [Plaintiff’s] operations were suspended as a result of direct physical loss or damage[.]”
The lawsuit follows cases filed against dozens of other commercialproperty insurers over what many business allege are improper blanket denials of claims associated with COVID-19-related losses.
ClassAction.org’s coverage of COVID-19 litigation can be found here and over on our Newswire.