Altar’d State Files $28 Million Lawsuit Against Insurer; BII Pandemic Claims Were Not Investigated

A national women’s fashion boutique is suing its insurer for $28 million over wrongful denial of coverage, alleging that the insurer denied the retailer’s business interruption claim for pandemic-related losses just days after it was filed.

The retailer, Altar’d State, said it filed a business interruption claim with Hartford Fire Insurance Company after it was forced to close its businesses in spring due to the COVID-19 pandemic.

But the retailer was denied by the insurer despite “paying substantial premiums to protect its business,” a statement said.

“Altar’d State purchased a comprehensive program of business insurance from Hartford including business interruption insurance and coverage for extra incurred expense,” said Provost Umphrey Law Firm equity partner Bryan Blevins.

“Hartford is ignoring specific policy language that covers Altar’d State when they were forced to temporarily close 119 stores in 37 states as a result of the COVID-19 pandemic.”