Raizner Slania LLP has filed a bad faith insurance lawsuit on behalf of an industrial building owner against Certain Underwriters at Lloyd’s London – Brit Syndicate 2987 and Hibbs-Hallmark & Company after its insurance claim was wrongfully denied.
Catastrophic Fire Devastates Commercial Property
The plaintiff owns a scrap metal dealing business that processes metal and then sells it to mills for profit. The property encompasses nearly four acres of land and includes multiple buildings, including a large scrap metal yard, a main office building, and several covered areas throughout the property. The business also utilizes numerous machines and large pieces of equipment, such as excavators, shredders, and separators, among others.
On May 5, 2017, a catastrophic fire broke out at the property. As a result, the business equipment on the property was severely damaged. In addition to damaged business equipment, the plaintiff lost extensive business income as a result of the fire damage to the property. Two pieces of industrial machinery were completely destroyed and two others sustained significant damage.
The damaged machinery prevented the plaintiff from processing and preparing its scrap metal. Because of this, the plaintiff lost business on significant materials that could have been purchased and sold to mills for a profit in the course of ordinary business operations. The damaged machines meant the plaintiff was unable to process the metal, so the plaintiff was forced to resell bulk material after the fire. Unfortunately, the post-fire material had to be processed manually, which caused the materials to incur higher labor costs.
Soon after the fire, the plaintiff filed an insurance claim for substantial property damages and lost business income. The plaintiff asked that the cost of the damages be covered pursuant to the policy, but Lloyd’s has refused to make a full payment on the plaintiff’s claim.
Lloyd’s conducted an unreasonable and inadequate investigation of the damages to the equipment and looked to find policy exclusions in order to deny the claim. Lloyd’s wrongfully denied, underpaid, and delayed plaintiff’s claim for actual damages to the property and lost business income. Specifically, Lloyd’s has chosen to continue to deny and delay timely payment of the damages.
Violations of the Texas Insurance Code
Our clients cites numerous violations of the Texas Insurance Code, including the failure to effectuate a prompt, fair, and equitable settlement of a claim and misrepresentation of the insurance policy under which it affords property coverage to the plaintiff. Our client also alleges numerous violations of the Texas Deceptive Trade Practices-Consumer Protection Act.
Get Help With Your Insurance Claim
If your commercial insurance claim includes damage to specialty equipment, you will need the help of an experienced insurance attorney. Insurance companies often try to use dishonest tactics and misrepresentation to deny coverage for specialty equipment. At Raizner Slania LLP, our fire damage insurance attorneys have helped scores of clients with insurance claims and we know how to evaluate specialty equipment insurance claims. Contact us today to schedule a free consultation to discuss your case.