Angelina’s Class Action Lawsuit Claims Breach of Contract After Denied Insurance Claim

The Co-operators General Insurance Company unlawfully denied business interruption insurance coverage during the COVID-19 pandemic, according to a new class action lawsuit Canada.

Plaintiff Black Venom Coffee Corporation dba Angelina’s (“Angelina’s”) claims it lost business income after having to close due to COVID-19 restrictions. Angelina’s launched the class action lawsuit after Co-operators General Insurance denied it’s claim, despite having an “all-risks” insurance policy.

COVID-19 Takes a Toll on Angelina’s

The coronavirus began infecting people in China in December 2019. By January 2020, COVID-19 spread throughout several countries across the world. On Jan. 28, 2020, the first coronavirus case discovered in British Columbia was announced.

On March 17, 2020, the Provincial Health Officer announced an Emergency Order due to the outbreak of coronavirus in Canada. Angelina’s was forced to close as a result of the restrictions of the COVID-19 pandemic and filed a claim for business interruption insurance. After several phone and email exchanges with Co-operators General Insurance Company, Angelina’s was allegedly given formal notice of denial on May 22, 2020.

“All Risks” Policy Coverage Denied

Angelina’s class action lawsuit Canada stems from the business’ denial of “all risks” coverage despite the health official’s announcement of a “notifiable contagious or infectious human disease” in Canada. According to the business interruption insurance class action lawsuit, Angelina’s insurance policy claims that their coverage includes loss of income arising from an interference or interruption of business. “Such coverage arises where there is direct physical damage to the Plaintiffs and class members’ property or where the Plaintiffs and class members’ access to their property has been prohibited by order of Civil Authority due to damage to neighbouring premises” the COVID-19 coverage denial class action states.

 Angelina’s lawsuit also alleges that their insurance policy covers loss for damages for “complete or partial” business interruption due to a contagious disease within 25 kilometers within the businesses.

Angelina’s felt peace of mind knowing that in the midst of the confusion and interruptions of the pandemic that they were covered with their business insurance policy. Most commonly, insurance policies offer sweeping descriptions, and the definitions can only be limited by distinct exceptions. In Angelina’s case, the policy allegedly did not include exemptions that prevented them from receiving coverage.

Breach of Contract: A Common Occurrence During the Pandemic

Angelina’s insurance coverage denial class action lawsuit is suing for breach of contract and seeking general damages, punitive damages, court costs, and any other damages the Court finds fair. 

According to the complaint, Angelina’s was forced to shutdown by an Emergency Order, losing revenue, and incurring costs due to an infectious disease. These types of losses are allegedly expressly covered in the policy. The policy also covers infectious diseases which for a restaurant, closing was absolutely necessary. Angelina’s class action lawsuit also argues that the business reasonably demonstrated the explanations for the claim. Angelina’s also argues that they have always upheld its end of the contract by staying up to date with payments.

The complaint also points out that if Co-operators General Insurance Company wanted to exclude virus pandemics in their policy, they could have added a clause following the 2003 SARS outbreak, but they did not.

Angelina’s class action lawsuit is far from the first legal action against insurance companies during the pandemic. Hundreds of businesses have similar stories of practically automatic denials from their insurance companies after filing claims for business interruption amid the coronavirus pandemic.

Several class action lawsuits were launched against Aviva Insurance Company for denying business interruption coverage to policy holders during the pandemic. Plaintiff Fritzworks filed a claim after they were also forced to close by orders of public health officials. When Fritzworks was denied, they filed a class action lawsuit against Aviva for breach of contract and breach of duty of good faith.

Economical Mutual Insurance Company is also facing legal actions citing breach of contract for denial of business interruption coverage. After plaintiff Matrix Production Services was forced to close during the pandemic, they received a “blanket” denial, even though they say their policy should have covered them.

Angelina’s breach of contract class action lawsuit is on behalf of all persons in British Columbia who held a Co-operators General Insurance Company business interruption insurance policy and were denied coverage during the pandemic. The Class Period started on March 17, 2020, and will continue until a date set by the Court.

Are you a business owner in British Columbia who was denied coverage by the Co-operators? You may be eligible to join this COVID-19 business interruption insurance class action lawsuit investigation. Fill out the form on this page to see if you qualify! 

Angelina’s is represented by Douglas Lennox and Darren Sall of Klein Lawyers LLP.

The Angelina’s Insurance Coverage Denial Class Action Lawsuit is Black Venom Coffee Corporation dba Angelina’s v. The Co-operators General Insurance Company, Case No. VLC-S-S-208864, in the Supreme Court of British Columbia, Canada.

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