EDWARDSVILLE — The operator of gaming cafes located throughout Illinois is suing its insurance carrier for allegedly denying the plaintiff's COVID-19 business loss claim.
Highland Management Group LLC filed a complaint Jan. 7 in the Madison County Circuit Court against Society Insurance and The Pillar Corporation, alleging bad faith denial of insurance, negligent failure to procure insurance and breach of contract.
Highland Management operates video gaming cafes throughout Illinois. The company claims that it purchased business interruption insurance from Society Insurance through Pillar and that it filed a claim due the COVID-19 pandemic shutdown of its cafes. Highland alleges Society Insurance failed to cover its business losses and that its claim was wrongfully denied.
The plaintiff claims its insurance policy with Society Insurance, for which premiums are paid up to date, covers "direct physical loss or damage" and does not limit or exclude losses from "viruses, communicable diseases or pandemics."
Highland alleges that as a non-essential business, it was forced to "halt its ordinary gaming operations" during the state's stay at home order due to the pandemic and has suffered "substantial" business income loss and incurred "extra expense." It also claims the denial of its claim was "vexatious and unreasonable" and that Society Insurance failed to conduct a "reasonable claim investigation."
Highland seeks monetary relief of more than $50,000 trial by jury and all other just relief. They are represented by Ann Callis, Eric Holland and R. Seth Crompton of The Holland Law Firm LLC in St. Louis.
Madison County Circuit Court case number 21-L-000013