Insurer Denied Business Interruption Losses Without ‘Reasonable Investigation’

Mealey's (May 1, 2020, 2:50 PM EDT) -- CHICAGO —A dental services provider insured filed suit in a federal court in Illinois on April 6, alleging that its insurer committed breach of contract and acted in bad faith in denying its business interruption claims arising from the state-ordered closure of its business due to the novel coronavirus “within a very short period of receiving” the claims and “without first conducting any meaningful coverage investigation, let alone a ‘reasonable investigation based on all available information’ as required under Illinois law” (Sandy Point Dental PC v. The Cincinnati Insurance Company, et al., No. 20-2160, N.D. Ill., N.D. Ill., Eastern Div.)....