With coronavirus cancelations on the rise, some insurance companies may deny valid claims for event insurance.  If that denial is in bad faith, you may have a cause of action against your event insurer.

Many insurance companies offer event insurance, which can defray the cost of an event cancelation.  Larger event may have similar coverage, such as concerts, sporting events, and festivals.

Insurance companies may not deny a valid insurance claim in bad faith.  In order to recover for a bad faith denial, the plaintiffs must prove (1) a refusal to pay after recognition of a valid claim, (2) bad faith, and (3) aggravating or outrageous conduct.  If these three elements are satisfied, the insured may recover punitive damages, as well as their actual damages.  These claims are often coupled with claims for unfair and deceptive trade practices, which can allow for treble damages.

If you have canceled an event due to the coronavirus and your insurance company is refusing to pay your event insurance coverage, contact the attorneys at Miller Law Group today for a free consultation.   We can help you mitigate the financial impact of coronavirus cancelations.

Additional Resources: 

Homeowner’s Insurance and Natural Disasters

Fraud in North Carolina