Covid-19 continues to affect the United States, putting consumers, businesses, and workers into a state of limbo as the spread of the virus has required an extended state of government-mandated isolation measures. While the shelter-in-place orders have been necessary to help contain the virus and save lives, the fact remains that many businesses, both small and large, are struggling to survive. This leaves business owners confused, worried, and unsure of what the future holds for the livelihood they worked so hard for.
This is where your commercial insurance policy, specifically the business interruption portion of the policy, should come into effect. It is important to read the fine print of your policy to determine what coverage you may have at your disposal. And, because this situation and the laws regarding insurance coverage are constantly evolving, even if you have been denied a claim under your business interruption policy, you may still have options.
Is Covid-19 covered by business interruption insurance?
The answer to this question is a complex one. Unfortunately, many insurance providers are denying claims for losses related to Covid-19. The only way to determine if you could receive compensation is to read over your policy carefully and pay attention to these aspects of your policy:
- Civil Authority Clauses – These clauses, which typically do not require actual “physical damage” to your business, cover shutdowns that are mandated by local or state governments in the event of a nearby disaster. If your business is inaccessible due to civil authority shutdowns or you were affected by “stay-at-home” orders/curfews, you may be entitled to compensation.
- Business Income Coverage – This coverage compensates a business owner for lost income due to the suspension of operations. The suspension must be caused by direct physical loss or damage to your business property.
- Extra Expense Coverage – This coverage aims to minimize the suspension of your business and is used to cover the necessary expenses a business owner faces during the “period of restoration” after damage has occurred. This can include cleaning services, disinfectants, security, advertising costs (for sharing of new operating hours and/or reopening), relocation costs, and/or setting up remote employment for employees working from home.
- Business Interruption Coverage – Business interruption coverage applies if a business is shut down after suffering physical damages following a natural disaster. This provides compensation for basic operating expenses, loan payments, payroll, and taxes, although policyholders are required to show physical loss or damages in order to receive compensation.
Insurance providers are denying claims for Covid-19, stating that the virus does not have clear physical effects to businesses or buildings. However, the very definition of “physical loss or damage” has been defined as “any impact on property which prevents the property from being used for its intended purpose”. Lawsuits regarding other contaminations, such as cases involving the bacteria E.coli, have been successful in the past and lawsuits in the U.S. have already begun to be filed against insurers that are refusing to pay business interruption claims related to Covid-19.
If you are a business owner and have attempted to receive compensation for Covid-19 from your business insurance provider but have had your claim denied, the experienced lawyers at America’s Consumer Lawyer may be able to help.
What can I do if my business interruption claim was denied?
If your insurance company denied your business interruption claim due to Covid-19, it is not a guarantee that that is the end of the road. Many business owners believe they have no rights to push back and the insurance companies bank on the fact that policy holders who have had their claims denied will usually give up and accept the decision.
You have paid your insurance premiums on time for years—your insurance company should be there for you. If your Covid-19 business interruption claim was denied by your insurance provider, you have the right to challenge their decision.
My business interruption insurance has a “virus exclusion.” Do I still have rights?
You may. The language in insurance policies can be difficult to decipher even for the most savvy and experienced business owner, and insurance companies have been caught trying to trick their customers out of compensation before. When your business is on the line, it is vital that you pursue every avenue to potentially save it. This includes challenging their denial.
My insurance company “low-balled” me with a settlement offer. What should I do?
Insurance companies rely on the fact that most customers take the first settlement offer they receive without questioning it. If you feel that the offer was too low, you have the right to challenge it and it is in their best interest to listen to your counteroffer. In the event of a lawsuit, if a jury finds that the insurance company acted in bad faith, you may be entitled to up to triple punitive damages.
Should I wait for other, already filed legal action(s) to be completed against my insurance company before filing my own legal claim?
No. The longer you wait, the longer it will take for you to get compensation and the longer it will take to get your business back up and running.
Won’t my general liability insurance, worker’s compensation, and/or property insurance policies cover everything?
They may provide some help, but it might not be enough. All avenues of help should be considered, including the business interruption insurance you have paid for over the years.
Let the lawyers at America’s Consumer Lawyer be your lifeline.
These are uncertain times for business owners. Covid-19 has caused disruptions that have severely impacted our economy and affected almost all industries. Nobody should have to worry about keeping a roof over the heads of their family, but for many business owners this is a hard-hitting reality.
If you are a business owner and you are facing the loss of your business or your business interruption claim has been denied, we may be able to help. The dedicated lawyers at America’s Consumer Lawyer will do everything possible to protect your rights and help you to get the compensation you deserve.
We see you as a person, not just a client – and that makes us better at the work we do. We listen. We learn your story. And, as we help you get the money you deserve, we go above and beyond in a way most law firms never could and never would. Because we’re not just lawyers. And you’re not just a client. We’re friends, neighbors, family. We’re all people and here at America’s Consumer Lawyer, we put People, First.
Helping our clients is about counseling, advocating, and ultimately solving problems. With years of experience successfully representing the people, not the powerful, we will take care of the insurance adjusters, your medical bills, your property damage, and your lost wages, and monitor your treatment so you can focus on healing and getting your life back to normal. Our unique formula has earned us over 1050 outstanding client reviews on our website, an A+ BBB rating, and over 150 five-star reviews on Google. Call 888-572-0176, e-mail us at michael@agrusslawfirm.com, or schedule a meeting with us here. We’re here 24/7.
