On May 1, 2020, Edelson PC, a nationally recognized leader in plaintiffs' class and mass action litigation, and Kirk, Huth, Lange & Badalamenti PLC filed a class action lawsuit against Auto-Owners Insurance Company (“Auto-Owners”) alleging wrongful denial of claims for business interruption insurance coverage resulting from losses sustained due to the ongoing COVID-19 pandemic. The lawsuit was filed in the Third Judicial Circuit Court, County of Wayne Civil Division.
The plaintiff in the case is Sea Land Air Travel, which is a family owned and operated travel agency founded in 1961 and located in Paw Paw, Michigan. The plaintiff obtained business interruption insurance coverage through a policy issued by Auto-Owners for the period March 1, 2020 to March 1, 2021. The complaint alleges that, despite the plaintiff performing its obligations under the policy, Auto-Owners issued a blanket denial to the plaintiff's claim for any business income losses or other covered expenses related to the COVID-19 pandemic.
This case is the latest in a series of lawsuits being brought against insurance companies across the country for the wrongful denial of claims for business interruption insurance. If your business has been denied coverage—by Auto-Owners or another insurance company—or you would like to discuss the extent of coverage you may have available under a policy, please contact Kirk Huth partner Robert Kirk at rkirk@kirkhuthlaw.com or 586.412.4900.
