A local network of eye care clinics is suing its insurance provider for millions of dollars after being denied a claim of lost business due to the coronavirus pandemic.

Systems Optics Inc., which provides laser eye surgery and other ophthalmological services at seven Novus Clinic Total Eye Care locations, filed the breach of contract lawsuit Wednesday, seeking to recover more than $2 million in business losses from Connecticut-based Twin City Fire Insurance Co., a subsidiary of The Hartford, a financial services conglomerate.

An attorney representing the eye clinics in Alliance, Coventry, Green, Medina, Northfield, Tallmadge and Wooster said similar lawsuits involving restaurants and hair salons in Medina, Summit and Cuyahoga counties are coming soon.

Across America, a cadre of businesses hit hard by state-ordered closures — from chefs to hair stylists to travel agents — are reviewing their insurance policies and wrestling with insurance providers for relief amid this pandemic-prompted economic downturn. Their denied insurance claims seek revenue loss from "business interruption" due to government closure orders, which typically falls under a broad category of property damages on most insurance policies.

Another subsidiary of Hartford Financial Services denied such a claim filed by a chef in California’s Napa Valley, where other wineries and restaurants are also seeing claims rejected due to policy exclusions for pandemics and viruses.

Leon Davis, assistant director of media and public relations for The Hartford, said the company is not commenting on this case. He suggested getting an industry perspective from the American Property Casualty Insurance Association, which was emailed questions about the Summit County lawsuit.

Earlier this month, Mitchell’s Ice Cream — among other Cleveland area businesses — filed for a declaratory relief judgment after being denied a similar claim by its insurance company, The Cincinnati Insurance Companies.

Insurance companies and their trade association representatives have said that after the Severe Acute Respiratory Syndrome (SARS) outbreak of 2003, many policies were updated to exclude pandemics and viral outbreaks from subsequent policies. Otherwise, the policies would be too expensive.

But nowhere in the policy purchased by Systems Optics Inc., is there a reference to virus or pandemic.

"There is no specific exclusion," said William Novac, the attorney for the eye clinics. "And the law in Ohio is quite clear that where the language is ambiguous in insurance policies, the ambiguity is against the insurance company."

The insurance policy, which costs $16,912 in annual premiums, lists $6,443,000 in coverage for 30 consecutive days of lost business income. This portion of the policy may apply, said Novac. But he doesn’t expect Summit County Judge Susan Baker Ross, or any court, to consider this or similar lawsuits until after a statewide moratorium on civil cases is lifted on July 30.

The local eye clinics are going on two months of closures, Novac said. Employees have been laid off. Procedures like corrective eye surgery were deemed elective or nonessential when Ohio Gov. Mike DeWine handed down an order to shutter many businesses in March.

That order, backed by an emergency declaration by the Ohio Department of Health, is the cause for the lost business — and will likely be the crux of the lawsuit.

Attached as an exhibit in the Summit County lawsuit, the policy lists an exclusion for governmental action as "seizure or destruction of property by order of governmental authority."

But it’s unclear if a statewide closure order would qualify.

For example, there’s specific language in the policy that allows for claims if the business is torn down to stop a fire from spreading. But it’s silent on paying claims tied to stay-at-home or mandatory closure orders.

"When you read an insurance policy, you have to read it in its entirety," said Novac. "It talks about governmental action and destruction or seizure of property, which really doesn’t apply here."

Novac hinted at the possibility of reaching an out-of-court resolution with Hartford, "at least in this case."

In the meantime, he’s got more clients preparing to file lawsuits on denied insurance claims.

"We have a number of other cases coming involving hair salons and other restaurants, which I’m not at liberty to discuss at this time," he said.

Reach Beacon Journal reporter Doug Livingston at dlivingston@thebeaconjournal.com or 330-996-3792.