Attorneys, Landlord Sue Insurance Company For Business Losses Amid COVID-19 Lockdowns

A Houston law firm and its landlord sued the firm’s insurance company in Connecticut, alleging the insurer improperly denied the firm’s claim for business income losses caused by government shutdown orders for COVID-19.

The lawsuit by Kennedy Hodges & Associates and Three Commas, the landlord, are one example of a growing trend nationwide of businesses of all types suing their insurance companies, alleging the insurers improperly denied COVID-19 related claims.

The plaintiffs suspended their businesses between March 18 and May 1, which interrupted their business income, according to the proposed class action complaint.

They filed suit June 19 in the U.S. District Court for the District of Connecticut against Twin City Fire Insurance Co. and The Hartford Financial Services Group, which does business as The Hartford.

The proposed class encompasses Hartford’s policy holders, who had to shut down their businesses because of government COVID-19 orders, and who had Hartford deny their claims for lost business income.