EDWARDSVILLE — A commercial real estate company is suing its insurer over denied business loss claims due to the COVID-19 pandemic.
ShopOne Centers Reit Inc., filed a complaint March 31 in the Madison County Circuit Court against Zurich American Insurance Company and American Guarantee & Liability Company, alleging breach of contract.
According to the complaint, ShopOne buys, sells, owns and operates commercial real estate such as shopping centers, salons, bars, restaurants, gyms and fitness centers in 11 states. The plaintiff claims it holds insurance policies with the defendants that include coverage for business losses. ShopOne alleges that due to the COVID-19 pandemic and related business closures and emergency declarations, it experienced "a slowdown and/or cessation" of business due to tenants not paying rent or paying only reduced rent. It also claims it incurred pandemic expenses which caused it to have to borrow on a line of credit.
ShopOne alleges its insurance claim was wrongfully denied on March 4, 2021, by the defendants. The defendants allegedly stated the policy did not cover the COVID-19 virus and "does not constitute direct physical loss or damage to property."
ShopOne seeks monetary relief, trial by jury and all other appropriate relief. It is represented by Mark Goldenberg, Thomas Rosenfeld and Kevin Green of Goldenberg Heller & Antognoli PC in Edwardsville and J.C. Pleban of Pleban & Petruska Law LLC in St. Louis.
Madison County Circuit Court case number 21-L-000408