Business Interruption Insurance Attorneys
Insurance policies exist to protect those in need whenever suffering significant losses. The same can be said for businesses who obtain business interruption coverage. You expect that the insurance company will help your business after a devastating loss, but this is not always the case and some insurance companies focus more on their own profit instead of helping you and your business recover.
Was Your Business Impacted By The Recent COVID-19 Pandemic?
Countless businesses have closed due to laws and state-mandated closures to prevent the spread of COVID-19. The national pandemic has had a devastating impact on businesses and their ability to earn income. Restaurants, hotels, retail stores, and more have had to furlough or lay off employees, and have lost the ability to earn significant income due to these closures. Others have had to permanently close or relocate because of the pandemic.
Many commercial insurance providers offer business interruption coverage to help businesses in their time of need. Whether your business has experienced income loss, relocation expenses, or other losses, you may be able to file a business interruption claim along with obtaining additional federal assistance that can help you through the process. Speaking with a lawyer about your rights can help you throughout the process to obtain compensation for your losses or closures related to the COVID-19 pandemic.
WHAT IS BUSINESS INTERRUPTION INSURANCE?
For many businesses, obtaining business interruption insurance allows for coverage when it comes to financial losses due to physical damage to a property or premises, including physical losses that prevent businesses from operating.
Businesses often have insurance that covers the cost of repairs from property damage or physical losses, but they may not always have the coverage to compensate lost income from closures. Business interruption insurance allows for this type of coverage to recover income lost due to closure.
In many situations, businesses can recover compensation for the following losses:
- Expected income that would have been earned had operations continued
- Operating expenses that include payroll
- Additional costs, such as rent or the cost of relocating
Many policies cover all risks, which can include COVID-19 and other pandemics. However, there are some coverage options that exclude these losses, so it's best to speak with a lawyer about your options as a business owner.
COVERAGE IS PROVIDED FOR THE “PHYSICAL LOSS OF” OR “DAMAGE TO” PROPERTY
COVID-19 has led to countless state-mandated closures and orders that have prevented businesses from operating. This has also led to physical losses because they cannot use the premises they own. Because of this, businesses should qualify to recover under business interruption claims and any other applicable policy that includes these types of losses.
While you would expect an insurance provider to protect you, some companies are using policy language to deny claims. They're making claims that physical loss and damage expenses should only occur when someone experiences damage due to premises issues after a natural disaster. However, a global pandemic can create these losses as well.
A physical loss that triggers property and business interruption claims should not solely speak to structural damage caused by a fire or earthquake. However, the presence of contaminant, such as the spread of COVID-19, constitutes as a physical loss and should be covered under business interruption claims. Once the business experiences economic losses because of it, businesses should have the right to recover compensation when they need and deserve it most.
INSURANCE COMPANIES ARE LIBERALLY OVER-CONSTRUING
EXCLUSIONS TO AVOID COVERAGE
It's important for businesses to recognize what their policies say. In many policies, exclusions often include the word “virus” which can impact the pandemic and business interruption claims at this time. Insurance companies are hoping this exclusion can help them protect profit during this time. However, these exclusions may not always apply. Depending on how the policy is drafted, this exclusion can be invalidated in a potential claim or lawsuit.
When the exclusion of “virus” doesn't exist, some insurance companies are using other terms to deny claims. However, working with a business interruption claim can help you and your business avoid improper denials from insurance companies when needed most.
CIVIL AUTHORITY COVERAGE
Business property insurance policies don't always carry limits when businesses experience financial losses because of physical losses or damages. They also cover losses from the impact to other property because of business interruptions. Civil authority coverage helps cover losses when businesses are closed due to state emergencies or mandated closures that prohibit business owners from operating and earning an income as a result of damage to the premise or premises around the business.
The World Trade Center attacks on 9/11 serve as a recent memory of this type of coverage. The events led to the closure of lower Manhattan, and this type of coverage applied to the losses for those business within the defined radius of the insured location.
When state and local governments have issued closures because of COVID-19, the restrictions in place have caused significant income loss. The closures have resulted in office buildings, hotels, restaurants, retail stores, and more businesses experiencing physical losses.
If you're not sure if your coverage will help you obtain compensation for COVID-19 business interruptions, you should speak with an attorney who can help you understand your rights and options. You can learn how you may recover compensation for your losses.
CONTACT US
The Property Claims Litigation Group is here to help you review your policy and your case. If you qualify to recover compensation under a business interruption claim due to COVID-19, you can trust us to protect your rights throughout the entire process. Contact us at (404) 937-3176 to learn if you are covered for your COVID-19 related losses and what kind of compensation you can recover as a result of your business interruption.