The Beach Glo Class Action Lawsuit
Beach Glo Tanning Studio Inc. in Point Pleasant, NJ, has filed a claim against its insurance companies. According to reports, the tanning salon filed a class action lawsuit after being denied a claim for business losses due to the coronavirus pandemic.
After Gov. Phil Murphy announced the comprehensive lockdown in March, Beach Glo Tanning Studio Inc. and the other non-essential businesses were forced to shut down. For four months, the salon remained closed until the order was lifted in June. By this time, the company already lost a huge amount of income during that time.
Because of this loss, Beach Glo filed a loss of income claim. However, the claim was denied in July because the salon’s policy has a “virus exception.” In that policy, the insurance company “will not pay for loss or damage caused by or resulting from any virus, bacterium or another micro-organism that induces or is capable of inducing physical distress, illness or disease,” said the owners.
Meanwhile, Beach Glo said that the loss of business it suffered was not because of COVID-19. According to them, their loss is because of the government’s shutdown order. In this regard, last October 5, the company sued its insurers – Nationwide Mutual Insurance Company and Scottsdale Insurance Company, a Nationwide subsidiary – in U.S. District Court in New Jersey.
Did you close your business due to government order during the early months of the COVID-19 pandemic? Did your insurer deny a claim for loss of income under your insurance policy’s business interruption provision? Tell us about your experience.
More About the Beach Glo Class Action
“Scottsdale and its parent company, Nationwide … used a time of international crisis to blatantly cheat the plaintiff out of money owed to it by issuing blanket denials to valid insurance claims,” the class action lawsuit asserts.
Beach Glo and its lawyers are seeking the federal court’s approval that the loss of income was a result of the government shutdown orders, not the coronavirus. Furthermore, they want to prove that Scottsdale and Nationwide committed a breach of contract in denying its claims.
Also, the company accused the insurance companies of violating state consumer protection laws against fraud and unjust enrichment. This means that the insurers received a profit at the expense of the business without providing their clients with just compensation.
Editor’s note on the Beach Glo Class Action:
This piece is to inform you about The Beach Glo Class Action Lawsuit. If you believe that what is alleged in the piece has affected you, please don’t hesitate to reach out to us.
We’d be happy to help you take a step in the right direction, fight this issue, and better enable you to join in on any potential consumer class action. If interested, please send an email to Outreach@ConsiderTheConsumer.com, find us on Twitter or Facebook, or even connect with us directly on our website! We look forward to hearing from you all.
Similarly, please check out our current list of Class Actions and Class Action Investigations, here.
Interested in articles like these? Become a subscriber below!