Several Maine Insurers are Being Sued Over Denied Business Interruption Claims

The Hartford is one of many insurance companies that is facing lawsuits filed by business owners for its lack of covering claims related to COVID-19 losses.

As difficult as it was for business owners in Maine to have to close their doors to the public after Governor Janet Mills ordered non-essential businesses to close, things only seemed to get worse for these individuals as time went on. You see, after the government shuttered businesses and revenue stopped accumulating, business owners turned to their insurers for financial relief. Rather than receive the help they had been paying for, they were instead given a denial notice stating that their claim would not be covered.

The Hartford Denies COVID-19 Claim Filed by the Owner of a Restaurant that was Established in 1908

John’s Grill has lived through it all—the Spanish Flu pandemic of 1918 and the Loma Prieta earthquake in 1989. Now, the current owner, John Konstin, is trying to make it through the COVID-19 pandemic. But Konstin worries that “its continued existence is endangered as the insurance policy he thought would allow John’s to shutter during the coronavirus crisis won’t be paid out” [Source: Eater].

Business insurance companies are backing their decision to deny COVID-19 claims alleging that coverage does not extend to pandemics. Insurers are also saying that if business owners want to utilize their business interruption insurance, they must provide proof that shows the losses they suffered were due to physical damage their property suffered. While many have begun challenging their insurer’s decision outside of the courtroom, others have turned to the legal system for help.

John’s Grill is one of many restaurant owners who has filed a lawsuit against their insurer.

After the owner of John’s Grill learned that his business interruption claim wasn’t going to be covered, he filed suit against The Hartford and affiliate Sentinel Insurance. In an emailed statement Konstin said, “I did not want to file a lawsuit, but I made sure we had insurance to protect the restaurant and our family of employees. Hartford now denies coverage, claiming that the specific provision that says we are protected if a ‘civil authority’ shuts us down, doesn’t mean what it says — we had no choice but to file this lawsuit for all of our employees.”

Are you considering filing a lawsuit against your insurer over a denied business interruption claim?

If your insurer denied your business interruption claim even after you paid your premium for coverage, USAttorneys.com can help you get connected with a Maine insurance claim denial lawyer who is prepared to defend your rights as a policyholder. Challenging an insurer’s decision at a time like this isn’t going to be easy, but you can increase your chances of winning your case when you retain an insurance claims attorney in Maine.