Mapfre Insurance Covid-19 Salon Insurance Coverage Class Action

Many of the businesses that were forced to close to prevent the spread of the coronavirus pandemic are seeking to recoup lost business income from their insurance companies. Many insurance companies have rejected their claims. In this class action, the complaint alleges that Mapfre Insurance Company and College Highway Insurance Agency, Inc. should provide payout for claims of lost business income.

The class for this action is all salons that have suffered business interruption and lost income as a result of Civil Authority Orders issued in response to the Covid-19 pandemic.

Plaintiff Albertina Guzman Picot, a hair salon, does business as Salon Cabellos. The salon was insured with Mapfre and College Highway. College Highway is wholly owned by Mapfre. The policy includes coverages for business personal property, business income, and extended special business income.

The complaint alleges, “The terms of the policy explicitly provide the insured with insurance coverage for actual loss of business income sustained, along with any actual, necessary and reasonable extra expenses incurred, when access to the Insured’s properties is specifically prohibited by Civil Authority Orders. This additional coverage is identified as coverage under ‘Civil Authority’.”

According to the complaint, “[t]he Policy is an all-risk policy, insofar as it provides that covered causes of loss under the policy provides coverage for all covered losses, including but not limited to direct physical loss and/or direct physical damage, unless a loss is specifically excluded or limited in the Policy.”

While the policy appears to contain a Virus Exclusion, the complaint asserts that it “was never intended … to pertain to a situation like the present global Pandemic of the Coronavirus and therefore does not exclude coverage in this matter.” It claims that the exclusion was developed as a response to the SARS epidemic, “which was not a Pandemic and not a global Pandemic…” The complaint also claims that the Virus Exclusion was only a clarification of existing law and was “fraudulently adopted, adhesionary, and unconscionable.”

Furthermore, the complaint alleges, “Access to [Salon Cabellos’s] business was prohibited by Civil Authority Orders and the Policy provides for coverage for actual loss of business sustained and actual expenses incurred as a covered loss caused by the prohibitions of the Civil Authority Orders in the area of [the] Insured Property.”

When Salon Cabellos submitted its claim to College Highway and Mapfre for losses due to closures mandated by civil authorities, it was told that the companies were denying Covid-19-related claims.

Article Type: Lawsuit
Topic: Insurance

Most Recent Case Event

Mapfre Insurance Covid-19 Salon Insurance Coverage Complaint

July 1, 2020

Many of the businesses that were forced to close to prevent the spread of the coronavirus pandemic are seeking to recoup lost business income from their insurance companies. Many insurance companies have rejected their claims. In this class action, the complaint alleges that Mapfre Insurance Company and College Highway Insurance Agency, Inc. should provide payout for claims of lost business income.

Mapfre Insurance Covid-19 Salon Insurance Coverage Complaint

Case Event History

Mapfre Insurance Covid-19 Salon Insurance Coverage Complaint

July 1, 2020

Many of the businesses that were forced to close to prevent the spread of the coronavirus pandemic are seeking to recoup lost business income from their insurance companies. Many insurance companies have rejected their claims. In this class action, the complaint alleges that Mapfre Insurance Company and College Highway Insurance Agency, Inc. should provide payout for claims of lost business income.

Mapfre Insurance Covid-19 Salon Insurance Coverage Complaint
Tags: Business Insurance, Covid-19 Related, Denial of Benefits, Insurance