Judge Throws Out Salon Owner’s COVID-19 Insurance Coverage Class Action Lawsuit

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Hartford Pandemic Insurance Class Action Dismissal Overview:

• Who: A class action lawsuit filed by Miami salon owner Patricia Bourgier against Hartford Casualty Insurance Company has been thrown out by a federal judge.
• Why: Bourgier argued her policy with Hartford should cover losses that occurred after her business was disrupted because of the pandemic; the judge disagreed, arguing Bourgier “failed to plausibly allege a direct physical loss to her business.”
• Where: The lawsuit played out in federal court in Florida.

A Miami salon owner is not eligible for insurance payments after her business was disrupted due to the pandemic, a judge has ruled. 

In a ruling made last Thursday by a Florida federal judge, the class action lawsuit filed by Plaintiff Patrice Bourgier against Hartford Casualty Insurance Company was dismissed.

In his judgement, U.S. District Judge Federico A. Moreno sided with Hartford’s argument in its motion to dismiss, saying Bourgier failed to show direct physical loss to her business.

“Here, Bourgier has failed to plausibly allege a direct physical loss covered by the Policy under Florida law,” he wrote. “Because the losses and expenses are not covered by the policy, Hartford’s motion to dismiss is granted.”

Bourgier, the owner and operator of a full-service salon in Miami, says she obtained an “all-risk” property insurance policy in 2019.

In March 2020, Bourgier was “forced to close the salon as a result of contamination by the coronavirus and related government orders,” she says.  

And, while the salon re-opened after the closure orders were lifted, it “re-opened in a physically transformed, altered, and impaired state” that “severely impaired [her] ability to make use of its property.” 

In her class action lawsuit, Bourgier claimed the losses and expenses incurred in relation to the slowdown of her business operations were covered under the Hartford policy. 

However, Hartford moved to dismiss Bourgier’s class action complaint because the policy requires direct physical loss or damage to property, which it said was not present in her case. 

It pointed out that its policy also includes a “Virus Exclusion.” On Thursday, the judge sided with the insurance company after reading the particular policy and taking note of the virus exclusion.

“Given that Bourgier has failed to show that the Policy’s limited grant of virus coverage applies here, dismissal of Bourgier’s claims under the ‘Virus Exclusion’ is appropriate,” he said. 

In April last year, two French restaurants in California sued Hartford Fire Insurance over claims that the company should provide coverage during the coronavirus pandemic. That same month, Lloyd’s insurance underwriters were also accused of wrongfully denying a business interruption insurance claim by a Texas movie theater owner.

Coronavirus lawsuits have been filed over a variety of issues including price-gouging, business interruption insurance, impact on workers, impact on voters, and more. 

In addition, consumers have faced financial injury as companies continue to deny refunds for concert tickets, theme park passes, airfare, and vacation plans that had to be canceled due to the pandemic. For more on the latest coronavirus-related lawsuits, click here. 

What do you think of the judges’ decision in this case? Let us know in the comments! 

The Hartford Pandemic Insurance Class Action Dismissal is Bourgier et al., v. Hartford Casualty Insurance Company, Case No. 21-21053-CIV-MORENO in the U.S. District Court for the Southern District of Florida.

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• Miami Restaurant Ramps Up Fight for Pandemic Insurance Coverage in Court of Appeals