49ers, Vera Bradley Sue Insurance Companies for Withheld COVID-19 Coverage

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49ers, Vera Bradley COVID Lawsuits Overview:

• Why: The two lawsuits allege each insurance company failed to pay for covered losses caused by COVID-19 shutdowns.
• Who: The San Francisco 49ers football team and stadium are suing their insurance company. Handbag company Vera Bradley is also suing its insurance company.
• Where: The 49ers COVID lawsuit was filed in California superior court. The Vera Bradley COVID lawsuit was filed in Rhode Island superior court.

In separate lawsuits, the San Francisco 49ers and Vera Bradley are suing their insurance companies for allegedly failing to pay claims for losses related to shutdowns triggered by the coronavirus pandemic. 

49ers Argue Coverage Under ‘All Risks’ Policies

The San Francisco 49ers (Forty Niners SC Stadium Company LLC, Forty Niners Stadium Management Company LLC and Forty Niners Football Company LLC) are suing their insurance company, American Home Assurance Company (AHAC).

Due to the coronavirus pandemic, the 49ers’ Levi’s Stadium was forced to close for several months and subsequently operate at limited capacity. The 49ers claim their COVID-related losses are covered under their “all risks” policies, which covers the stadium if it had to “suspend operations for reasons outside of their control,” according to court documents.

The team details that its policies include coverage for “losses caused by the spread of viruses or communicable diseases.” AHAC continues to refuse “to pay claims for losses and costs due to COVID-19,” according to the complaint. 

The 49ers seek a declaration that their claims should be covered by AHAC; actual, special, compensatory and consequential damages; pre- and post-judgment interest; and attorneys’ costs.

Vera Bradley Accuses Insurance Co. of ‘Calculated Scheme’ in COVID Claims

Vera Bradley, Inc. is suing its insurance company, Affiliated FM Insurance Company (AFM), for breach of contract and acting in bad faith when it refused to pay claims for Vera Bradley’s COVID-related losses under its “all risks” coverage. 

Vera Bradley argues its more than 150 properties, which “provide an important sensory component … that online shopping cannot replicate,” became unusable due to the COVID-19 virus.

Vera Bradley points to its “Communicable Disease—Property Damage” coverage, which provides coverage if a communicable disease was present at the location and thus limited or prohibited access. Despite this coverage, “AFM has reneged on its obligations,” the complaint argues.

Further, Vera Bradley alleges that AFM and its parent company, FM Global, are “engaged in a calculated scheme to deny COVID-19 related claims” to its policyholders as evidenced by an FM Global internal memo, “Talking Points on the Novel 2019 Coronavirus.” 

Vera Bradley seeks a declaration that its claims are covered by AFM, special and consequential damages over $10,000, pre- and post-judgment interest and attorneys’ costs. 

What do you think about the 49ers’ and Vera Bradley’s COVID claims being denied by their insurers? Sound off in the comments below!

The 49ers plaintiffs are represented by Jennie Lee Anderson of Andrus Anderson LLP, et al.

The 49ers COVID Class Action Lawsuit is Forty Niners SC Stadium Company LLC, et al. v. American Home Assurance Company in the Superior Court of the State of California, Santa Clara County.

Vera Bradley is represented by Stephen M. Prignano of Mcintyre Tate LLP, et al.

The Vera Bradley COVID Class Action Lawsuit is Vera Bradley Inc. v. Affiliated FM Insurance Company, Case No. PC-2022-01118, in the Superior Court of Rhode Island, Bristol County.

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