Aviva Insurance Issues Blanket Denials of Coverage, Class Action Lawsuit Claims

A Canadian hotel owner has filed a class action lawsuit against Aviva Insurance Company for blanket denials of business interruption insurance during the coronavirus pandemic.

Aviva Insurance Policy Covers “Restricted Access” to Premises

Plaintiff Roshan Holdings Inc. is the owner and operator of two hotels and is insured by Aviva Insurance Company of Canada. The class action lawsuit Canada launched in July 2020 by Roshan Holdings alleges Aviva blanket denials are rejecting businesses regardless of having a “Restricted Access” clause in their insurance policies.

According to the Aviva business interruption blanket denials class action lawsuit, the policy held by Roshan Holdings covers property damages, general liability, and most importantly, business revenue losses.

The Aviva blanket denials class action lawsuit document states that the policy covers “loss of business income sustained by the Insured, including the amount of any extra expenses necessarily incurred by the Insured to continue to resume operations as nearly normal as possible, while access to the ‘premises’ is prohibited in whole or in part by order of civil authority or by advice of the Public Healthy Authority or similar authority, but only when such order or advice is given as a direct result of any or all of the following occurrences…the outbreak of a notifiable contagious or infectious disease.”

As the hotel business felt the pressures of the coronavirus pandemic, many looked into their insurance contracts to find that they should be able to rely on business interruption coverage, as stated in their policies. Other hotel owners have also filed class action lawsuits over Aviva blanket denials during the pandemic.

Aviva Blanket Denials Issued Regardless of COVID-19 Restrictions

Ontario authorities declared a state of emergency as a result of the coronavirus outbreak on March 17, 2020. The Canadian government classified COVID-19 as a contagious infection that could cause sickness, so authorities issued “Closure Orders” throughout Canada.

Mandatory closures of all non-essential businesses and services were issued. 

Roshan Holdings Inc. and proposed Class Members were all impacted by the closure orders. Hotels were not completely closed, but the daily operations were severely restricted. Hotels were banned from serving food or beverages, and all community areas like pools and gyms were closed. Hotels were allowed to have guests book rooms, however with borders closed and stay at home orders in effect, bookings were not occurring as usual.

Due to the COVID-19 restrictions, Roshan Holdings and Class Members experienced a loss of income. On May 22, 2020, Aviva sent a letter to the hotel owner, citing details of the denial. Then, on June 8, 2020, a follow-up denial letter was sent.

The Aviva blanket denials to Class Members allegedly explained that “there is no coverage under the policy for business income losses resulting from the Closure Orders made in response to the current worldwide COVID-19 pandemic,” according to the denied business interruption claims class action lawsuit. 

Legal challenges have been common during the confusion caused by the unprecedented coronavirus pandemic. Many businesses are in need of assistance when it comes to navigating the many instances that have sparked class action lawsuits. 

Aviva Blanket Denials Trigger Class Action Lawsuits Galore 

There have been many class action lawsuits launched over Aviva Insurance’s blanket denials by frustrated business owners who are not recovering losses from the pandemic-induced business interruption.

The business interruption experienced by the Class Members due to the closure orders and the Aviva blanket denials that soon followed resulted in a class action lawsuit alleging breach of contract. The Class Members are seeking $150,000,000 for breach of contract for business interruption, court costs, and other amounts the court determines necessary.

The Aviva blanket denials class action lawsuit alleges the insurer was contractually obligated to compensate the Class Members. Roshan Holdings and Class Members paid their premiums faithfully and expected Aviva to honour the policies during a crisis that caused them to lose business revenues.  

The Aviva blanket denials class action lawsuit identifies its Class Members  as “All persons, natural or corporate, who were insured by Aviva Insurance Company of Canada (“Aviva”) under a Commercial Insurance Policy issued by Aviva, pursuant to the Hotel Program, whose access to their businesses were prohibited, in whole or in part, as a result of a mandatory Closure Orders made by the Province of Ontario on March 23, 2020, and similar Closure Orders made in all provinces and territories in Canada, and were denied coverage for Business Income.”

Are you a B.C. Canadian business owner that was affected by Aviva blanket denials during the COVID-19 pandemic? You may be able to join a business interruption insurance lawsuit. Submit your information for a free case evaluation by a lawyer!

Roshan Holdings Inc. and potential Class Members are being represented by Kevin L. Ross, Peter W. Kryworuk, Anthony J. Bedard, and Jacqueline M. Palef of Lerners LLP.

The Aviva Insurance Company Blanket Denials Class Action Lawsuit is Roshan Holdings Inc. v. Aviva Insurance Company of Canada, Case No. CV-20-00001194-00CP, in the Superior Court of Justice, Ontario, Canada.

Read More Lawsuit & Settlement News:

• Arch Insurance Class Action Lawsuit Seeks Refunds For Cancelled Trips
• Class Action Lawsuit Over Quebec Private School COVID-19 Interruptions
• Long Term Disability Lawyer | Insurance Claim Denial Help
• Pandemic Business Interruption Insurance Canada Potential Lawsuit