Hyannis Dentist Files Class-Action Suit Against Insurer

Aug. 25--HYANNIS -- A cosmetic dentist in Hyannis has filed a federal class-action lawsuit against his insurer for denying his claim for loss of income caused by Gov. Charlie Baker's COVID-19-related business closures.

Paul Marshall, who has a cosmetic dentistry practice on Winter Street, filed the suit Aug. 17 in U.S. District Court in Boston against Safety Insurance and Safety Indemnity Insurance Co. alleging breach of contract.

Marshall says he kept his side of the deal by paying his premiums, and Safety has now reneged on its commitments to him.

Marshall is asking for a jury trial and looking for payment of income lost while closed, the money spent on required safety measures to reopen and up to triple damages.

According to the 28-page complaint filed on his behalf by his attorney, Patrick Sheehan, of Boston-based Whatley Kallas LLP, the policy paid for by Marshall protected him from loss of business income due to direct physical loss of or damage to his place of business -- referred to as "business interruption coverage."

His policy also provided "extra expense" coverage to pay expenses that would not have been incurred without the loss or damage to his place of business.

Marshall also had "Civil Authority" coverage, under which Safety promised to pay for loss of business caused when a civil authority like the governor prohibits access to the place of business.

Based on restrictions imposed under the governor's emergency order, Marshall was unable to see patients except for emergencies from March 13 through June 8.

When he was allowed to reopen, Marshall was required to purchase safety equipment to protect his patients and staff.

The complaint characterizes Safety's claim denial as a "blatant breach of contractual obligations," as well as a violation of state law.

Marshall did not return a call seeking comment, but Sheehan provided one by email.

"We are handling similar claims against a variety of insurers, including The Hartford, Cincinnati, Lloyd's, Erie, Covington and others," Sheehan said. "There are currently hundreds of similar cases pending nationwide, in both federal and state courts."

As far as he knows, Sheehan said, the insurance industry has denied all claims for business interruption relating to COVID-19, "making this type of litigation essential to obtain desperately needed relief for businesses who have lost income during these challenging times."

In the complaint, Sheehan said Marshall's policy with Safety is an "all-risk policy."

In an all-risk insurance policy, all risks of loss are covered unless they are specifically excluded, Sheehan wrote. He said Marshall's policy contained no such exclusions.

By filing it as a class-action suit, it allows other businesses that had purchased similar coverage from Safety and had claims denied to join the suit.

The complaint alleges that Safety's blanket denials of claims arising from COVID-19 violates state laws.

Marshall and others similarly wronged by Safety, according to the court suit, are entitled to all remedies, including "refunds, actual damages, double or treble damages, attorneys' fees and other costs." The suit also asks for payment of pre- and post-judgment interest.

George Murphy, president and CEO of Safety Insurance, did not respond to a request for comment.

Follow Christine Legere on Twitter: @ChrisLegereCCT.

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