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Small Businesses Taking Legal Action Against Insurers for COVID-19 Losses

Posted On behalf of Schmidt Kramer on Apr 20, 2020 in General

small businesses sue over covid-19 lossesSmall businesses losing lots of money during the coronavirus shutdown may expect insurance to cover their losses. Unfortunately, many insurers are denying COVID-19-related claims, leaving small businesses to fend for themselves.

Several Pittsburgh restaurants have taken legal action against their insurers in the Allegheny County Court of Common Pleas claiming that financial losses sustained during this pandemic should be covered by their insurance policies.

Joseph Tambellini Restaurant, an Italian eatery and Siebs Pub, an Irish and American pub in the heart of the city, have filed civil lawsuits against Erie Insurance Exchange.

These lawsuits are looking to help cover business income and COVID-19-related losses following the order by Pennsylvania Governor Tom Wolf to shut down nonessential businesses back on March 19th.

Schmidt Kramer partner Scott Cooper is representing these restaurant owners. According to Cooper, these lawsuits related to COVID-19 losses are believed to be the first of their kind to be filed in the state.

The Harrisburg firm is also a part of a statewide group of professionals leading the way to fight for small businesses to get business interruption claims paid.

A spokesperson for Erie Insurance stated that the insurer will not comment on pending legal matters.