A proposed class action out of Pennsylvania state court claims CNA and Valley Forge Insurance Company have wrongfully denied a dentist’s property damage claim amid the COVID-19 pandemic.
The lawsuit explains Valley Forge and parent company CNA have issued commercial property insurance policies such as the plaintiff’s that include business income, extra expense and civil authority coverage. According to the case, the plaintiff purchased an “all risks” policy that purported to provide coverage for all losses, damages and expenses to the insured property unless specifically excluded.
When Pennsylvania Governor Tom Wolf issued a series of executive orders in March 2020 mandating the closure of all non-life-sustaining businesses and urging state residents to stay home, the plaintiff’s business suffered losses that he claims were not excluded from his Valley Forge insurance policy.
“As a result of the impact of the COVID-19 pandemic and the referenced Orders of the Governor, [the plaintiff] has sustained almost total loss of use of his premises, was forced to close to the public except for emergency dental procedures only, has seen a dramatic decrease in his business, and has been forced to furlough employees, thereby incurring losses, damages, and expenses,” the complaint claims.
The plaintiff alleges that although he submitted a claim for damages under his property insurance policy, the defendants denied his claim. According to the case, the defendants have similarly denied the insurance claims of other businesses whose operations require interaction, gatherings, and contact in areas with a heightened risk of contamination by the COVID-19 virus.
The case was filed on the same day as at least one other lawsuit seeking coverage from a commercial property insurer for COVID-19-related business losses.
ClassAction.org’s coverage of COVID-19 litigation can be found here and over on our Newswire.