Shivam Gastonia, Inc. filed a verified complaint in Gaston County Superior Court against Accelerant Specialty Insurance Company alleging breach of contract for largely denying a tornado-related property and business interruption claim under a commercial policy covering a Quality Inn in Gastonia, North Carolina, effective May 1, 2023 to May 1, 2024, for which Shivam paid over $30,000 in premium. The complaint alleges a May 8, 2024, tornado with ~70 mph winds passed within 700 feet of the hotel, causing damage that even Accelerant’s engineer identified as consistent with wind-related punctures and detached metal roof panels, yet Accelerant largely denied coverage despite wind being a covered cause. According to the complaint, Accelerant “pigeonholed” the loss into lower-limit policy provisions (wear and tear, collapse, hidden decay, leaking/seepage), offered only $11,000 instead of paying under the Blanket Covered Property limit of $5,205,096 on a replacement cost basis, and failed to pay the business interruption claim as well. The pleading further asserts the denial materials referenced a different hotel address in Yanceyville (approximately 150 miles away) and even attached an irrelevant Florida workplace injury report, which Plaintiff cites as evidence of an inadequate investigation. Shivam claims it satisfied all conditions precedent, alleges breach of contract, and seeks judgment, a jury trial, costs, and attorney’s fees as allowed by law and contract.

Everyone hates insurance letters, but they always need to be carefully reviewed to ensure the insurer is conducting an adequate claim investigation and providing a reasonable interpretation and application of the policy terms.