After ABC Daycare and Learning Center in Richmond was ordered by Governor Andy Beshear to close its doors on March 20th due to the COVID-19 pandemic, the facility, like many other businesses, filed a business interruption claim with its insurer [Source: Lexington Herald Leader]. Shortly after filing their claim, the facility owners say they received a denial notice on April 1st from West Bend Mutual Insurance Company of West Bend, Wisconsin. Surprised by the denial notice, the facility decided to file a lawsuit at the beginning of May against West bend in Madison Circuit Court.

In the daycare’s lawsuit, the facility accuses West Bend of “unjustly rejecting” its business interruption claim, disclaimed coverage, and denying any liability.” The facility, which is able to hold up to 395 children, says that it has already suffered more than $100,000 in income losses as a result of the forced closure. The lawsuit goes on to say that “West Bend has violated the Kentucky Unfair Claims Settlement Practices Act, resulting in the daycare center incurring additional damages, and has breached its contract.”

The lawsuit seeks $100,000 to cover the facility’s claim, at least $300,000 in punitive damages to “to punish West Bend from further bad faith acts,” and “reasonable costs, expenses, and attorney fees.” The daycare has also requested a trial by jury.

Although a spokeswoman for Beshear has expressed that the governor is “urging insurers to honor [business interruption claims],” it appears the only way business owners are going to get their insurers to pay up for their COVID-19 claims is through litigation. Insurance companies have expressed in the dozens of denial notices they have sent out already that they do not intend on covering any business interruption claims related to pandemic losses.


Are you thinking about filing a lawsuit against your insurer for denying your business interruption claim?


If so, can connect you with some of the best Kentucky insurance claims denial lawyers in your city who would be happy to answer any questions you might have. Although filing a lawsuit against your insurer might seem like a big step to take, it is one many business owners are willing to follow through with as they are at risk of losing their entire business. And because these business owners have paid into their policy for insurance that is expected to cover events such as the current crisis we are going through, many are preparing to fight out the battle between them and their insurer in court.

If you think filing a lawsuit against your insurer might be the next step you need to take, let help you find an attorney who is qualified to help you.

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