Can a Kentucky Business Owner Sue Their Insurer if the Company Denies Their Claim for COVID-19 Losses?

You can, but you better lawyer up if you want to stand a chance at winning.


Insurance companies across the U.S. are denying business interruption insurance claims and business owners aren’t happy about it. While most business owners are under the impression that their business interruption insurance coverage is for moments like this—when the government forces their business to close or their establishment is contaminated with harmful germs, carriers are saying coverage is only available when their operations have been interrupted as a result of their property suffering physical damage.

Rather than accept the denial and their losses, business owners are fighting back and defending their rights as a policyholder. Here are a few of the businesses that have already filed a lawsuit against their insurer for denying their business interruption claim.


  1. A Houston-based reconstructive and cosmetic surgical group has filed suit against Sentinel Insurance Company (The Hartford) and Alliant Insurance Services of Houston “for business losses after state and local COVID-19 orders prevented it from conducting business,” reports PR Newswire. Because the surgical group believes its policy providers coverage for the government-ordered shutdown, it “requests a declaratory judgment from the court that The Hartford and Alliant have a duty under the insurance contract to cover the losses My Houston Surgeons suffers while its business is closed.”


  1. A Virginia restaurant owner of 20 years filed suit against their insurer Twin City, a company owned by The Hartford Insurance Group, asking “the court to compel its insurance company to cover its business losses related to COVID-19” [Source: Washington City Paper]. The complaint alleges that The Hartford had a net income of more than $2 billion in 2019, hence, it should be providing coverage for the losses the business has suffered thus far.


  1. The owner of a hair salon has also turned to the legal system for help after her insurer, Miller’ Mutual, denied her business interruption claim. The owner, Ashlee Kissel, says she is just “trying to get the coverage that [she] paid for” [Source: Local 21 News]. While the salon owner says that her policy will provide coverage for physical loss or damage, the denial notice her insurer sent her states that “because there is no physical damage to the building, [the salon owner] is not eligible for coverage.”


Businesses all over the U.S., including Kentucky, have been closed for nearly a month now due to COVID-19 and many are searching for ways to recoup the revenue they lost. If your business suffered a loss and your insurer has denied your business interruption claim, USAttorneys.com is here to help you locate a Kentucky insurance claims denial lawyer who can help you fight back against your insurer’s decision.

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