This is the case of Fresca Holding Co. LLC v. Citizens Insurance Company of America, in the U.S. District Court for the District of Colorado.
Fresca Foods accuses a Hanover Insurance Group unit of wrongfully denying its business interruption claims related to the destructive Marshall Fire in a lawsuit that has since been removed to Colorado federal court.
The Marshall Fire was a fire that started on December 30, 2021, as a grass fire in Boulder County, Colorado. In terms of structures lost, it is the most devastating fire in Colorado’s history.
In its complaint, Fresca accused Citizens Insurance Co. of America, of refusing to pay the loss claims it put forth in violation of its policy.
Fresca Foods, a food manufacturer headquartered in Colorado, was forced to close its business for several days during and after the Marshall Fire due to non-potable water that was used to put out the blaze.
The complaint alleges that Fresco did show the insurer evidence that its factories were “rendered unsafe,” even without physical damage to the premises or any structural damage as a result of the fire.
