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Society Insurance Company Requests Dismissal Regarding Bad Faith Claims



The details of this case involve business income loss insurance coverage claims by several businesses in Illinois and the subsequent denial of coverage regarding those claims by Society Insurance Company, which is an insurance company headquartered in Wisconsin. The lawsuits of a few companies turned the case into a multi-district litigation involving plaintiffs from several midwest and southern states.


This case centrally revolves around the claims denied by Society Insurance Company and the insurance company's communications regarding their coverage for COVID-19 losses. Rick Parks, the CEO of Society Insurance Company, has stated that the company spoke wisely regarding their coverage and did not mislead any of the plaintiffs regarding their coverage.


The claimants allege that Society Insurance Company issued "wholesale, cursory coverage denials" that violate coverage policies and "discouraged them from filing insurance claims."


Society Insurance Company claims that the company has always been clear regarding its messaging and denies the allegations made by the three bellwethers, known each as the Big Onion, Valley Lodge, and Rising Dough plaintiffs. These bellwethers were approved to proceed in court with a bad faith lawsuit against Society Insurance Company.


This case is yet another example of how COVID-19 can impact employers, carried insurance policies, and insurers. Mehr, Fairbanks, & Peterson takes no stance on this case, but if you need an attorney to represent you regarding an insurance claim, we can help you.


Nothing in this blog entry should be construed as legal advice, as we do not represent you, and you are not our client.


Mehr, Fairbanks & Peterson

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