STORY FROM: COVID-19 Litigation Report

Mich. Daycare Chain Files COVID-19 Proposed Class Action Against Insurer

MILWAUKEE, Wis. — The owners of a Michigan daycare chain have filed a proposed class action against West Bend Mutual Insurance Co., asserting that business interruption losses arising from the COVID-19 pandemic and related civil authority orders are covered under the insurer’s all-risk policies.

In a May 12 complaint filed in the U.S. District Court for the Eastern District of Wisconsin, Paradigm Care & Enrichment Center, LLC and Paradigm Care & Enrichment Center 2, LLC contend that coverage is triggered under the policies’ provisions for business income, civil authority and extra expense.

The presence of COVID-19 caused direct physical loss ...

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