A national class action lawsuit has been proposed, which targets Canadian insurance companies for allegedly breaching their contracts with business owners by denying business interruption claims related to the COVID-19 pandemic.
Law firm Koskie Minsky LLP said that it has commenced the class action, together with the Merchant Law Group. The plaintiffs have also alleged that the insurance industry “conspired to deny coverage before claims are even made,” and that insurers are negligent and have breached the duty of good faith.
“Business interruption insurance is designed for circumstances such as the current pandemic,” said Koskie Minsky partner Kirk Baert in a statement. “The insurance companies appear to be failing small businesses when coverage is needed most.”
Those interested in participating in the national class action are asked to email Koskie Minsky.
Business interruption insurance claims are not the only pandemic-related concerns Koskie Minsky has been keeping its eyes on. On its website, the law firm said that it has been “actively monitoring” issues surrounding the pension and benefits plans of workers and unions, and how they have been severely impacted by the COVID-19 pandemic.
To help stakeholders understand how the pandemic has affected – and will affect in the future – both insurance and the legal disputes involved, Insurance Business Canada and Canadian Lawyer will be presenting a webinar entitled “Insurance Disputes and Litigation – A Look at the COVID-19 Fallout,” to be held tomorrow - July 09, 2020. Registration is now open.
