Business interruption claims
If you are a business owner you most likely have an owner’s policy or insurance policy which includes coverage for business interruption. Business interruption coverage is set in place to compensate the business owner when business significantly slows or ceases due to a fire, natural disaster, or other major issue. Because of the devastating effects the Covid-19 pandemic has had on our society, countless businesses across the country have been forced to cease operations.
Whether or not insurance companies will qualify such conditions for a business interruption claim is still up for debate and depends largely on the interpretation of the language used in the insurance policy. Because the Covid-19 pandemic is new to insurers, they may be quick to deny a claim without proper investigation. It is imperative to contact an attorney who specializes in Covid-19 business interruption claims before contacting your insurer.
An attorney specializing in Covid-19 business interruption claims will make sure you get the most compensation in a world where insurers will try to pay out as little as possible based on loose definitions of the language used in the policy. The Inserra Law Firm will fight to make sure those interpretations lean in your favor to cover any and all losses your business has had due to the Covid-19 pandemic.
What is covered by a business interruption insurance?
Rent or lease payments
Normally, a “covered peril” must occur before business interruption insurance can come into an effect. Covered in peril events include things like hurricanes, tornadoes, fires, flood, or other natural disaster.
The language used in policies state the insurer will pay for the actual business income lost, as long as that loss results from the essential suspension of operations during a restoration period. It is most common for ceasing of business to be a result of the physical destruction, damage, or loss of property.
If there’s not a demonstrable loss of the physical use of property, it is highly unlikely, if not impossible to make a claim under a business interruption policy.
Is Covid-19 covered by your business interruption insurance?
There is no simple “yes” or “no" answer because it is complicated to asses and an unprecedented matter. Although there is no visible damage to the business, an experienced attorney can argue that the business is in fact damaged by the virus if the business itself has been contaminated. This would be loss of income due to the physical impact of the virus itself. It is important, however, that your policy doesn’t exclude damage that results from a virus or bacteria. Many insurance companies excluded damage that results from a virus or bacteria after the early 2000’s SARS epidemic. Although a claim may seem futile, legal precedence may still lean in favor of the business owner. In many cases, courts ruled in favor of the business owner when asbestos was the culprit. Similarly, there was no 'visible' damage but there is damage to the property and loss of business due to it could not be denied.
Contact a Covid-19 Business Interruption Attorney
Talking with a Covid-19 attorney is so important, because it is such a complicated matter at this time. The insurance companies will almost certainly use the confusion to deny the claim or payout as little as possible. Whether you’ve been denied, were low-balled, or haven’t contacted your insurer, you are encouraged to contact a Covid-19 attorney.
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