KESSLER TOPAZ MELTZER & CHECK, LLP: COURT DENIES INSURANCE COMPANY'S MOTION TO DISMISS COVID BUSINESS INTERRUPTION CLASS ACTION LAWSUIT
On December 9, 2020, a federal judge permitted a class action lawsuit to proceed against State Farm Fire and Casualty Company and State Farm Mutual Automobile Insurance Company (“State Farm Insurance Company”) concerning the denial of business interruption insurance claims stemming from the COVID-19 pandemic.
The lawsuit alleges that in March 2020, and continuing to the present, State Farm Insurance Company sold commercial property insurance policies which guaranteed policyholders reimbursement of lost income and other expenses in the event that their businesses were suspended. Given the complete disruption of their businesses as a direct result of these social distancing and/or stay-at-home orders, policyholders submitted claims to State Farm Insurance Company seeking reimbursement for their lost income and other expenses under their policy’s Loss of Income and Extra Expense Coverage.
The lawsuit further alleges that State Farm Insurance Company violated its obligations pursuant to these commercial property insurance policies by arbitrarily and without justification refusing to reimburse policyholders for loss of business income and other expenses incurred as a result of social distancing and/or stay-at-home orders in connection with the COVID-19 global pandemic.
Any persons or entities who were denied business interruption or business disruption claims by their Insurance Company, are encouraged to fill out our online form or contact us today at 844-887-9500 or info@ktmc.com.