STORY FROM: COVID-19 Litigation Report

Ky. Daycare Sues Insurer Following Denial of COVID-19 Business Interruption Claim

LEXINGTON, Ky. — A Kentucky daycare owner has sued West Bend Mutual Insurance Co., seeking coverage for losses it suffered when state lawmakers imposed stay-at-home orders in response to the COVID-19 pandemic, forcing it to temporarily close its facilities.

In a complaint removed to the U.S. District Court for the Eastern District of Kentucky on June 4, ABC Daycare & Learning Center says it has sustained “direct physical loss of or damage to covered property” which is insured under its policy.

West Bend, However, denied ABC’s claim for business interruption coverage on April 1 on the purported basis that there ...

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