June 26, 2020 – Travelers Hit with Class Action in Illinois
Travelers faces another proposed class action filed this week by an Illinois restaurant and event space whose business was forced to shut down amid the COVID-19 crisis.
According to the case, Travelers denied coverage of the plaintiff’s business interruption losses based on the assertion that the “actual or alleged presence of the coronavirus,” which led to the business closure orders issued by the state, did not constitute “direct physical loss” as covered under the plaintiff’s property insurance policy.
The plaintiff argues that Travelers’ blanket denials of businesses’ COVID-19-related insurance claims without so much as an investigation contradict the language of its own policies and “appear to be driven by Traveler’s desire to preempt its own financial exposure to the economic fallout resulting from the COVID-19 crisis.”
Travelers Casualty Insurance Company has been hit with another proposed class action lawsuit over its alleged refusal to pay a Washington dentist’s claim for business losses related to the COVID-19 pandemic.
Originally filed in superior court in Washington, the lawsuit has since been removed to federal court.
April 23, 2020 – Another Case Filed
Another proposed class action has been filed this week against Travelers over the insurer’s alleged refusal to pay claims for COVID-19 related damages.
The 16-page complaint, filed by a Pennsylvania medical center, can be read here.
Two proposed class action lawsuits filed April 21 claim Travelers Casualty Insurance Company of America has failed to pay for covered losses suffered by businesses that were forced to close due to the COVID-19 pandemic.
The plaintiffs, two Washington dentists, allege they purchased insurance policies from the defendant that included coverage for business income, extra expense, extended business income, and civil authority coverage.
After the novel coronavirus was deemed a pandemic, state officials began issuing stay-at-home orders and shutting down non-essential businesses, the cases say. According to the suit, the plaintiffs were forced to suspend business operations after Washington Governor Jay Inslee issued on March 23 a “Stay Home, Stay Healthy” order, which has been extended until May 4.
The plaintiffs claim they suffered “direct physical loss or damage” as a result of the shutdown of their dental practices, and argue that the losses are covered under their Travelers insurance policies.
One plaintiff claims Travelers told her over the phone that her losses will not be covered, while the other suspects his claim will also be denied.
The two lawsuits come amid a growing trend of suits filed against insurance companies for allegedly denying claims for damages caused by the COVID-19 pandemic.
ClassAction.org’s coverage of COVID-19 litigation can be found here and over on our Newswire.