The continuing Covid-19 pandemic has placed many business owners—particularly owners of restaurants, bars, hair salons, daycares, and dental practices—in a state of limbo. Government-mandated shutdowns have put a huge strain on these businesses, leaving some at risk of losing everything they’ve worked so hard to build. 

Unfortunately for U.S. businesses, business interruption insurance coverage is falling short in helping to pay for lost income and other expenses related to Covid-19. Business owners are finding that insurers are denying business interruption claims on the theory that the novel virus does not constitute a “direct physical loss or damage,” and instead falls under the exclusion for bacteria, viruses, and microorganisms. This has triggered hundreds of lawsuits across the U.S. which will likely continue as businesses are forced to remain closed or only allowed to open on a limited basis as the pandemic continues into the foreseeable future. 

Business owners and insurance providers alike are watching the situation in the U.K. where European insurers’ AXA and Helvetia Insurance have agreed, after court rulings, to pay policyholders’ business interruption claims—mostly in the hospitality industry—for Covid-19 related business losses. AXA has reportedly agreed to pay over 200 Covid-19 related claims throughout France and Helvetia Insurance announced that most of its policyholders in Germany, Switzerland, and Austria have accepted settlements for business interruption. 

In addition, the Financial Conduct Authority has announced that it is taking certain insurers to court to seek clarity as to the coverage for Covid-19 related losses and in Germany, a group of insurers and the government have reached an agreement where the government will pay for 70% of business interruption losses for policyholders in the hospitality industry and the insurers will pay for half of the losses not covered by the government. 

It remains to be seen if the U.S. insurance industry will follow suit or if insurance providers will continue to avoid liability for Covid-19 related losses despite taking billions in premiums from their customers. Until then, business owners in the U.S. should continue to present claims to their insurers for Covid-19 related losses. Doing so will preserve all rights to pursue a claim in court or through alternative dispute resolutions in the event that coverage is denied, or you are offered a “low-ball” settlement. 

At this extraordinarily challenging time, we offer a free, no-risk review of insurance policies for businesses that have been closed due to Covid-19. It is important that you act quickly; business interruption insurance claims could be lost completely when business owners delay. The professionals at America’s Consumer Lawyer can review your particular policy, work through the nuances and confusing language, and help work to secure the compensation you deserve. 

The insurance company has a team of insurance experts and lawyers at their disposal that are preparing to deny claims and avoid payments. No business owner should have to navigate these uncertain times alone. Let us help, we put People, First. 

We at America’s Consumer Lawyer are here for you. Helping our clients is about counseling, advocating, and ultimately solving problems. With years of experience successfully representing the people, not the powerful, our unique formula has earned us over 1,050 outstanding client reviews on our website, an A+ BBB rating, and over 150 five-star reviews on Google. 

If you need a business interruption insurance lawyer, we can be your advocate. We have the skills and resources to fight for your rights as a business owner and we are prepared to do whatever it takes to get you the best settlement as efficiently as possible.