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Insurance Company Accepts Coverage for Business Interruption Claim After Four Months of Litigation

September 05, 2014

Dale Kingman and Matthew Pierce currently represent a large family-owned Washington food company in a coverage action in U.S. District Court for the Western District of Washington. The company sought business interruption coverage under a commercial property policy issued by its insurer following severe storm damage to one of its processing facilities. The insurer had denied coverage for the business interruption portion of the claim, claiming the company had not paid an extra premium when the damaged site was added to the policy as an insured location. The business interruption coverage was part of a blanket “sublimit” which was not changed with the addition of the new location. The company asserted claims against its insurer for breach of contract, declaratory relief, WAC violations, CPA violations, and attorneys’ fees. After four months of litigation, the insurer accepted coverage for the business interruption claim and agreed to adjust the loss. The court recently stayed the matter, pending the adjustment.

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