Texas Rug Store Says Ohio Security Insurance Wrongly Denied COVID-19 Claim

BEAUMONT, Texas — A Texas rug store has sued Ohio Security Insurance Co., accusing it of wrongfully denying its claim for business interruption losses arising from the COVID-19 outbreak and related government closure orders.

In a complaint removed to the U.S. District Court for the Eastern District of Texas on May 27, Sultan Hajer d/b/a Rug Outlet maintains that the virus and orders triggered coverage under the policy’s provisions for Civil Authority and Loss of Business Income.

“Ohio Security wrongfully denied plaintiff’s claim for business interruption even though the policy provides coverage for losses such as those suffered by plaintiff,” …