Meyers & Flowers files Business Interruption Insurance suit on behalf of Chicago’s Hampton Social River North Location
On March 15, like so many businesses, the owners of Hampton Social and the Bassment in River North closed their doors following Governor Pritzker’s closure orders.
They quickly turned to their insurance agency, Society Insurance, and filed a business interruption claim that would allow them to pay their employees, vendors, and landlord, and cover the other related business expenses they had as they shut down for the foreseeable future.
Within hours, the claim was denied despite Society Insurance’s express promise in its policy to cover the Plaintiff’s business interruption losses when the government forces a closure.
Facing massive losses, Hampton Social and the Bassment turned our Founding Partner Peter J. Flowers and the Meyers & Flowers team for help. The restaurant has filed suit against Society Insurance for breach of its insurance obligations by denying it business interruption insurance claim arising from the State-ordered interruption of their businesses due to COVID-19 pandemic.
Meyers & Flowers’ April 29, 2020 filing outlines how Society Insurance has failed to honor its obligations under the commercial businessowners insurance policy issued to Hampton Social's River North location. The policy clearly provides coverage for losses incurred due to a "necessary suspension" of its operations, including when its business is forced to close due to a government order. Our firm is asking for a declaratory judgment for breach of contract and bad faith denial of insurance.
According to Peter Flowers, "This is an extraordinary circumstance for Hampton Social and so many other business owners across the state. However, situations like these are exactly why business owners buy insurance. Hampton Social reasonably expected that the business interruption insurance policy it purchased from Society Insurance would allow them to pay their employees and cover continued business losses caused by viruses like the COVID-19 coronavirus.”
Filing suit is just the first step toward justice for businesses such as Hampton Social. Mr. Flowers also is reaching out to members of the Illinois General Assembly to be sure state lawmakers are aware of how this business insurance issue is affecting numerous Illinois small business owners. Mr. Flowers is representing a number of companies like Hampton Social whose businesses have been impacted by the COVID-19 mandated closures. If Meyers & Flowers can help your business or one of your clients during this time, please contact us at please reach out to us at email@example.com or 877-221-2511.