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Stresseed business owner regarding the Northbridge Insurance class action lawsuit

Northbridge General Insurance Corporation is facing a proposed class action lawsuit that alleges the insurer unlawfully denied insurance coverage for business income losses related to government regulations implemented to reduce the spread of COVID-19.

If you had a Northbridge insurance policy that included coverage for business interruption losses, you may be included as a Class Member in the Northbridge class action lawsuit.

COVID-19 in British Columbia

According to the Northbridge Insurance class action lawsuit, the Provincial Health Officer gave notice on March 17, 2020 that there was a COVID-19 outbreak in British Columbia. In response, many businesses were ordered to close or continue operations with reduced capacity. These orders were intended to curb the spread of COVID-19 in the province.

Plaintiff Tayron Holdings d/b/a Tempo Dance Academy reportedly lost access to its premises after the government imposed a COVID-19 shutdown.

“The government imposed the shutdown for two concurrent reasons: (1) due to physical injury to properties — the actual presence of COVID-19 living on the tangible properties; and (2) due to the risks of direct physical loss of or damage to the properties — the risk that COVID-19 could be transmitted and live on tangible properties.”

The plaintiff was affected by the emergency order, but believed that its income losses would be covered by its Northbridge business interruption insurance because the policy included “pandemic outbreak” coverage.

Business Interruption Coverage Denied

The plaintiff was reportedly covered by a Northbridge insurance policy that included business interruption insurance covering “Business Income for Actual Loss Sustained” and “Civil Authority coverage for 30 days Extension”; “Emergency Vacating Expense as a result of a Pandemic Extension”; and “Outbreak Extra Expense as a result of a Pandemic Extension.”

These policies were included in the plaintiff’s policy, which reportedly had coverage extending from Jan. 26, 2020 to Jan. 26, 2021. The plaintiff reportedly suffered a loss of business income when it was forced to close due to COVID-19, and is continuing to suffer business interruption losses until it is able to fully re-open.

Stressed out business owner regarding Northbridge insurance denying business interruption claims However, when Tempo Dance Academy sought to assert a claim for loss of business income related to COVID-19, Northbridge Insurance reportedly denied the claim.

Northbridge General Business Interruption Insurance

Tempo Dance Academy’s insurance policy reportedly states: “We will pay for your loss of ‘business income’, your incurred necessary ‘extra expense’, or loss of ‘rental value’ sustained during the Period of Indemnity due to the total or partial suspension of your ‘normal business operations’ directly resulting from and necessitated by ‘covered direct physical loss’ subject to the provisions and limitations set forth” in the policy.

According to the Northbridge General Insurance class action lawsuit, the insurance policy is an “all risks” policy and includes business interruption coverage without specifying an exclusion for “viruses” or “pandemics.” The text of the complaint explains some of the pertinent policy terms before concluding that the Northbridge business interruption insurance policy should cover COVID-19 related business losses.

“Taken together, the Policy covers lost business income resulting from the necessary interruption of or interference with the business of the Insured caused by the loss of use of tangible property, whether that property is physically injured or not,” the Northbridge Insurance class action lawsuit states. “The Policy also separately includes interruption or interference orders made by a civil authority or from a pandemic given as a direct result of property being unusable.”

The Northbridge Insurance Class Action Lawsuit seeks to represent a Class of all persons in Canada (excluding Quebec) who had Northbridge insurance policies with business interruption insurance since March 17, 2020. The plaintiff is seeking general damages for breach of contract, punitive damages, pre- and post-judgment interest, and other relief the court deems just.

COVID-19 Business Interruption Insurance Denials in Canada

Northbridge Insurance is far from the only insurance company in Canada to come under fire for denying business interruption insurance claims. Aviva Insurance is currently facing multiple business interruption class action lawsuits. One was filed by an Ontario denturist and the other was launched by the Royal Canadian Legion.

The insurance industry is not the only industry to face lawsuits stemming from issues related to COVID-19. Numerous COVID-19 lawsuits have been filed in Canada, and many more are likely to follow.

British Columbia business owners who were forced to close due to COVID-19 public health restrictions and whose business interruption claims were denied may be eligible to join a business interruption denial class action lawsuit. Fill out the form on this page to see if you qualify!

The plaintiff is represented by Anthony A. Vecchio QC of Slater Vecchio LLP.

The Northbridge Insurance Business Interruption Insurance Class Action Lawsuit is Tayron Holdings (2015) Ltd d/b/a Tempo Dance Academy v. Northbridge General Insurance Corporation, Case No. S2012105, in the Supreme Court of British Columbia, Canada.

Join a Free Pandemic Business Interruption Insurance Potential Lawsuit

If you are a B.C. business owner who was denied business interruption insurance coverage after closing due to COVID-19, you may be eligible to join this COVID-19 business interruption insurance class action lawsuit investigation.

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