Top litigators Mark Geragos and Harmeet Dhillon have joined forces to file multiple lawsuits against various insurance companies for denying insurance claims made by small businesses caused by so-called “stay-at-home-orders” imposed by local and state authorities.
Ben Meiselas, an attorney on the case from Geragos & Geragos, took to twitter following the filings and announced that the law firms would potentially be filings cases on behalf of “millions” of other small businesses.
Harmeet Dhillon responded to Meiselas’ tweet with her own statement: “Time time to fight back against insurance companies failing to honor their contracts and making bogus arguments about whether a virus can cause physical harm.”
The legal battle centers around insurance companies denying claims made by small businesses for business disruption caused by small businesses having been forced to shut down as a result of civil stay-at-home orders.
Insurance companies have argued that the business disruption coverage only relates to physical harm and damage and pandemics do not meet this definition and are not covered. In turn, Geragos and Dhillon have argued in the court filings that policy holders have paid premiums precisely for the type of loss they are now experiencing and insurance companies are acting in bad faith by not paying out on the policies. Small businesses should not be penalized and go bankrupt for complying with civil orders as insurance companies refuses to compensate the business policy holders for the loss, the attorneys argue.
Asked about the lawsuits he and Dhillon filed, Mark Geragos told The Hollywood Reporter, “You pay insurance for decades for precisely the unthinkable, and when it happens these insurance companies do the unconscionable.”