More businesses have sued their insurers over claims they wrongfully denied them coverage for losses they suffered from state-ordered shutdowns because of COVID-19.
From June 15 to June 17, three more lawsuits were filed in Cook County Circuit Court, part of a growing wave of legal actions launched against insurers accused of turning away from business owners seeking compensation under so-called business interruption policies.
On June 15, Windy City Limousine filed a complaint against the Cincinnati Insurance Company.
Also that same day, corporations Station Two LLC and 7452 North Western Avenue Inc. filed suit against their insurer, Society Insurance. Those companies own and operate restaurants in Chicago and Evanston, including Firehouse Grill, Casa Fuego Tacos, Etown Burger, the Candlelite restaurant group, Chi Burger, and others.
And on June 17, Firenze Ventures LLC, which operates Firenze-Italian Street Food, sued its insurer, Twin City Fire Insurance, which does business as The Hartford Group.
Firenze is located in the food court at the Ogilvie Transportation Center in downtown Chicago.
The lawsuits all assert the businesses suffered steep losses after Gov. JB Pritzker issued statewide orders shutting them down outright, or otherwise restricting their ability to attract customers.
However, when the suddenly struggling businesses sought assistance from their insurance companies, they claim the insurers denied their claims.
Firenze said Twin City said it had “no information to indicate that a civil authority issued an order as a direct result of a covered cause of loss to property in the immediate area of your scheduled premises.”
Firenze asserted the novel coronavirus that causes COVID-19 should be considered a “dangerous substance that can cause injury or death,” which should trigger its coverage for loss.
Windy City Limousine said its business had taken a hit from the COVID-19 pandemic, and the state response to it. Yet, the company said Cincinnati Insurance denied its claims for coverage, because the insurer refused to concede that the virus could be considered “direct physical damage or loss to property.”
The lawsuit quoted Cincinnati Insurance President CEO Steven Johnson stating publicly: “Some loss events, such as this global pandemic, are not insured because they are uninsurable due to their size and scope.”
Station Two and its related entities alleged Society Insurance denied their claims without “conducting its required investigation.”
The lawsuits come amid a blizzard of similar actions brought by businesses across Illinois and the U.S., accusing insurers of wrongly denying their claims for coverage, asserting similar exclusions.
Recently, for instance, both State Farm and Zurich American were hit with class action lawsuits in Chicago courts over such coverage denials.
The Station Two plaintiffs are represented by attorneys with the firm of Konicek & Dillon, of Chicago.
Firenze is represented by the firm of Edelman Combs Latturner & Goodwin LLC, of Chicago.
Windy City Limousine is represented by the firm of Corboy & Demetrio P.C., of Chicago.