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South Florida Theater Company Files Class Action Business Interruption Lawsuit


According to a report from Law 360, the owners of the iconic Miracle Theatre in Coral Gables, FL have filed a class action lawsuit over the denial of its business interruption claim. SCOR SE, a global reinsurance giant, refused to cover the company’s losses and expenses related to the coronavirus (COVID-19) pandemic. Below, our Miami business litigation attorneys provide a more detailed overview of the legal claim.

COVID-19 Business Interruption Claim Denied By the Insurance Company

 The Actors’ Playhouse at The Miracle Theatre is one of South Florida’s most prominent performing art centers. Similar to many other businesses in the entertainment industry, the theater suffered significant disruptions and losses as a direct consequence of the COVID-19 outbreak. Indeed, several months worth of shows were forced to be postponed because of the virus.

The company had an ‘all-risk’ insurance policy to help provide some protection against risks. To address the financial strain, the Miracle Theatre filed a business interruption claim seeking financial compensation for many of its COVID-19 related damages. However, the insurance carrier, SCOR SE, denied the claim. 

Legal Dispute: Lack of Explicit Virus-Related Exclusions 

The Miracle Theatre argues that SCOR SE failed to live up to its contractual obligations. The complaint argues that the COVID-19 losses were entitled to coverage under the policy. In contesting the denial of its business interruption claim, the policyholder focused on two key points:

  1. The all-risk commercial insurance policy included civil authority coverage. The theater’s operations were suspended, in part, because of government orders.
  2. The insurance policy did not contain explicit exclusions for virus or pandemic-related losses.

The plaintiffs stress that they are aware that many all-risk commercial insurance policies have exclusions for virus-related losses. As the policy offered by SCOR SE wholly lacked this type of language, they contend that coverage must apply. 

Class Action Claim: Miracle Theatre Wants to Represent Other Businesses  

In filing the business interruption lawsuit, the Miracle Theatre is seeking to represent an entire class of companies that have similar insurance policies. If the class action lawsuit is permitted to go forward, it will be one of the largest and most important business interruption claims filed in the country thus far.

Many business interruption claims are currently making their way through the courts in Florida. Policyholders who have had their COVID-19-related business interruption claim denied should always consult with an experienced business litigation attorney before giving up on the process. Insurance companies have been very aggressive in denying these claims.  

Contact Our Miami, FL Business Interruption Attorneys for Immediate Help

At Pike & Lustig, LLP, our Florida business litigation lawyers see solutions where others see problems. We have the skills, experience, and knowledge to handle all types of business interruption insurance claims. If your business interruption claim was denied, we are here to help. To request a completely confidential initial consultation, please call our law firm today. We represent companies in Miami, West Palm Beach, and throughout Southeastern Florida.




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