A Seattle fashion boutique says State Farm left it holding the bag after burglars hit during the 2020 protests - and now wants a jury to weigh in.
That, in essence, is the story laid out in a filing made on May 18, 2026, in the US District Court for the Western District of Washington, where WOW Studios, LLC has sued State Farm Insurance over a denied claim tied to the unrest that swept downtown Seattle in late May and early June of 2020.
WOW, a luxury apparel designer based in Seattle, says it had bought a commercial policy from State Farm covering the period from October 2019 through October 2020. According to the filing, the policy was meant to cover the kinds of things any retailer worries about - theft, burglary, loss of inventory and accounts receivable, and physical damage to the premises at 603 Stewart Street in downtown Seattle. It also allegedly included up to twelve months of lost-income coverage if a covered event knocked the business off its feet. WOW says it paid its premiums in full.
Then came the summer of 2020. As protests followed the death of George Floyd, WOW alleges that intruders broke into its retail store, damaging and making off with cash registers, computers, and a chunk of its inventory. Days later, according to the filing, the same building was hit again - this time at WOW's wholesale headquarters in the same building. The company says the second break-in cost it its sample collections and prototype designs for upcoming seasons, the lifeblood of a wholesale operation that allegedly served more than 200 accounts.
When WOW turned to its insurer, the filing states, State Farm denied the claim outright, taking the position that none of the losses were covered under the policy.
That denial is now the heart of a three-pronged case. WOW accuses State Farm of breach of contract, bad faith, and per se violations of Washington's Consumer Protection Act. The filing alleges the insurer misstated how its own exclusions worked, dragged out the investigation without a reasonable basis, leaned on speculation rather than facts, failed to give WOW's interests equal weight to its own, and ultimately forced the boutique into court to chase a payout it says it was owed. WOW is seeking compensatory and exemplary damages, along with attorney's fees.
For carriers and claims teams, the dispute is a familiar one with a long tail. Six years on, civil-unrest claims from 2020 are still landing in court, and Washington remains a tough venue when policyholders allege a denial was rushed, thin, or speculative - the state's Olympic Steamship doctrine puts attorney's fees squarely on the table.
The allegations have not been tested in court. State Farm has not yet filed a response, and no court has ruled on the claims.
