Aviva insurance faces class action lawsuit from hotels denied COVID coverage

TORONTO — A class action lawsuit has been filed against Aviva Insurance Company of Canada on behalf of hotels who were denied coverage for loss of business income resulting from COVID-19.

Lerners LLP, which filed the claim, says affected hotel chains include Best Western, Home 2 by Hilton and Hampton Inn.

The Ontario law firm alleges that Aviva was in breach of contract when it denied the hotels’ loss of business income coverage after the federal and provincial governments declared states of emergency, restricting their business due to the outbreak of novel coronavirus.

The proposed action claims for payment of loss of business income damages to those hotels with the Aviva policy.

Aviva couldn’t be immediately reached for comment about the lawsuit, which needs to be approved by a judge.

Multiple class action lawsuits have been filed in Canada against insurance companies, airlines, a meat-packaging company, retirement homes, Correctional Service Canada and others resulting from COVID-19.

This report by The Canadian Press was first published July 27, 2020.

The Canadian Press