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Another video gaming business sues insurance carrier over denied COVID-19 interruption claim

MADISON - ST. CLAIR RECORD

Saturday, November 23, 2024

Another video gaming business sues insurance carrier over denied COVID-19 interruption claim

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EDWARDSVILLE — A gaming house is alleging its insurance carrier breached contract after refusing to pay a business interruption claim stemming from the COVID-19 pandemic shutdown.

VZD LLC, doing business as Maverick's Slots, filed a complaint against The Cincinnati Insurance Company in Madison County Circuit Court on Aug. 31. 

According to the complaint, Maverick's held a commerical business policy with Cincinnati Insurance which covered losses in the event of a "business interruption." It filed a claim with Cincinnati after its video gaming location in East Alton was forced to close due to the State of Illinois' pandemic closure order from March 15 through March 30, 2020. Maverick's claims Cincinnati denied the claim, despite the fact that the state's closure order "prohibited the public from accessing their business" and their policy premiums had been fully paid.  

The business also alleges Cincinnati deniedits claim without "conducting any meaningful coverage investigation" and that their policy had no "exclusion for loss caused by a virus." The plaintiff says its policy clearly covers any "necessary suspension" of its business and that Cincinnati's denial of coverage is "unreasonable and inconsistent with the facts and plain language of the policy." 

Maverick's seeks monetary relief of more than $50,000, trial by jury and all other just relief. It is represented by Ann Callis, Eric Holland and R. Seth Crompton of The Holland Law Firm LLC in St. Louis. 

Callis filed a similar suit against The Hartford Fire Insurance Co. and broker Hub International Limited last month.

Madison County Circuit Court case number 2020L-001242

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