Bachman Files Suit Against Insurance Company for Lost Revenue During Pandemic
Bachman’s Inc., a Minneapolis-based floral and garden center chain, filed suit against its insurance company in Hennepin County District Court this week for lost revenue during the pandemic and government-mandated shutdown.
According to the complaint, Bachman’s purchased an insurance policy that would cover business interruption losses—including losses due to a pandemic—and the insurance provider hasn’t paid Bachman’s claim related to those losses. The complaint alleges that the policy went into effect in February and did not exclude pandemic-related losses. The complaint further details that the policy has a maximum payout of $10 million.
While it is unclear how much Bachman’s claims that it is owed, Bachman’s estimated annual revenue is around $80 million. Accordingly, Bachman’s losses could be millions of dollars. Bachman’s complaint alleges that sales always spike in the spring-time, however due to the coronavirus pandemic, the company was forced to close its stores when they would usually see the biggest increase in sales.
The insurance company has not yet answered Bachman’s complaint.