Hotel operator alleges insurer failed to pay fire claim

Kelly Holleran Mar. 20, 2009, 7:54am

Manprit Hospitality says it was wrongfully denied insurance coverage when it sold a building after a fire damaged it on March 18, 2007.

Manprit filed suit against Columbia Mutual Insurance Company on March 16 in St. Clair County Circuit Court, alleging it was not paid actual damages to which it was entitled.

Although Manprit claims it paid premiums for coverage, including business income, in a timely manner, Columbia denied its claims.

"The policy states that Columbia Mutual Insurance Company will pay (for actual loss of Business Income sustained due to necessary suspension of operations during the period of restoration)," the suit states.

After a fire destroyed Manprit's hotel, it was without income, according to the complaint.

The complaint does not state the hotel's location.

"There was substantial operating expenses incurred on and after the date of the fire," the suit states. "These expenses are but not limited to, Insurance, Payroll, Electric, etc. Manprit Hospitality LLC feels it was wrongfully denied a legitimate claim."

Manprit is asking that the court order Columbia restore it to a position prior to the fire.

St. Clair County Circuit Court case number: 09-L-0145.

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