WHEELING — Two lawsuits have been filed against Erie Insurance Property alleging when they had to shut down due to the COVID-19 pandemic, the insurance company wrongfully denied their claims.
Cirque De Cheveux, a hair salon in Wheeling, and Tri-State Tint & Vinyl, an automotive window tinting service in Wheeling, filed their lawsuits against Erie after Gov. Jim Justice ordered them to shut down on March 16, 2020, according to two complaints filed in Ohio Circuit Court.
The plaintiffs claim two of Justice's executive orders closed or otherwise limited occupancy of businesses like theirs and they should have had covered claims through Erie for their business losses.
"The plaintiff suffered covered loss under one or more of the following coverages: losses stemming from governmental suspension as a result of the COVID-19 pandemic relating from the losses of income, business interruption, extra expense, contingent business interruption, ingress/egress, civil authority, all risk coverage, and/or other coverage extensions under the policy of insurance," one of the complaints states.
The plaintiffs were told their claims were denied due to a virus exclusion in their insurance policies, however, they claim their policies did not include a virus exclusion.
The plaintiffs claim the letters they received from Erie noted that their claims were denied because "there is no coverage for your loss of income because there is no direct physical loss to your building or business personal property."
Erie breached its contract with the plaintiffs by wrongfully denying coverage, according to the suits.
The plaintiffs claim Erie also violated the Unlawful Trade Practices Act and caused them damages.
The plaintiffs are seeking compensatory and punitive damages. They are represented by David A. Jividen, George N. Sidiropolis and Jordan Laird of Jividen Law Offices in Wheeling.
The cases are assigned to Circuit Judge Michael J. Olejasz.
Ohio Circuit Court case numbers: 21-C-44, 21-C-55