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Truck Insurance Exchange Denial Covid-19 Business Losses WA Class Action

The complaint for this class action alleges that Truck Insurance Exchange is refusing to provide coverage for losses and damages to Washington businesses that resulted from governmental orders to close down to prevent the spread of Covid-19.

Truck Insurance issued an all risk policy to 54-40 Brewing Company, LLC covering its brewery and restaurant in Washougal, Washington. Among other things, it included Business Income coverage, Extra Expense coverage, and Civil Authority coverage.

In March 2020, Washington Governor Jay Inslee and local authorities issued directives limiting groups of people, curtailing travel, and limiting commercial activities, in order to prevent the spread of Covid-19. Due to these directives, 54-40 Brewery had to suspend its business operations, in whole or in part. This resulted in losses to the business as long as the orders stayed in effect. Other businesses were affected as well.

Even when the businesses were permitted to operate again, the complaint says, “they could only do so with significant alterations to their premises and business models at great cost, including, among other things, loss of use of space, installation of barriers, increased cleaning and sanitation protocols, changing business hours and employee hours, decreased customers traffic, and generally more expensive operations in order to comply with the Orders.”

The Orders, the complaint alleges, “were the direct, predominant, and efficient cause of [54-40 Brewery’s] direct physical loss or damage…”

The complaint claims, “The Policy initially premises coverage upon the trigger of ‘direct physical loss [] or damage. Throughout the Policy, the terms ‘loss’ or ‘damage’ refer to different concepts, yet [the Policy] sometimes uses such terms interchangeably.” According to the complaint, 54-40 Brewery’s losses were “caused by the Orders, which resulted in the economic loss and property damage…”

Extra Expense coverage is for necessary expenses incurred during a “period of restoration” including costs to “avoid or minimize the ‘suspension’ of business.” They can be used to reduce the amount of loss.

Civil authority coverage is for times when action by civil authorities prohibits access to the business premises due to “direct physical loss of or damage to property other than” at the premises.

However, Truck Insurance has refused to cover 54-40 Brewery’s losses due to the orders given by the state’s civil authorities during the pandemic.

The complaint defines four classes for this action, including a Direct Physical Loss or Damage Class, a Business Interruption Coverage Class, an Extra Expenses Coverage Class, and a Civil Authority Coverage Class. The full definitions for these classes can be found on page 6 of the original complaint, linked below.

Article Type: Lawsuit
Topic: Insurance

Most Recent Case Event

Truck Insurance Exchange Denial Covid-19 Business Losses WA Complaint

August 13, 2021

The complaint for this class action alleges that Truck Insurance Exchange is refusing to provide coverage for losses and damages to Washington businesses that resulted from governmental orders to close down to prevent the spread of Covid-19.

Truck Insurance Exchange Denial Covid-19 Business Losses WA Complaint

Case Event History

Truck Insurance Exchange Denial Covid-19 Business Losses WA Complaint

August 13, 2021

The complaint for this class action alleges that Truck Insurance Exchange is refusing to provide coverage for losses and damages to Washington businesses that resulted from governmental orders to close down to prevent the spread of Covid-19.

Truck Insurance Exchange Denial Covid-19 Business Losses WA Complaint
Tags: Business Insurance, Covid-19 Related, Denial of Benefits, Insurance