The insurance industry will not remain untouched after the COVID-19 pandemic has subsided. Social distancing has been implemented by both state and federal departments to mitigate the virus and this has caused many businesses to sustain losses. Although a light the end of this dark tunnel can be seen, many businesses around the world have closed or shut down as a result of the disease.
In order to avoid the virus, many business owners and their employees are staying home. The result is these people survive the virus, but not the aftermath. With the closing of a business, employment will be lost and employers and employees will not be able to pay their bills and face many hardships.
IS MY BUSINESS COVERED?
Business owners who have paid their insurance premiums to protect their businesses and their employees in the case of a pandemic, civil authority actions or natural disasters are covered. Unfortunately, insurers are stalling or even denying coverage now that businesses and workers need it. In many cases, insurers falsely claim a virus exception has disqualified them from coverage.
Business interruption or business income insurance does protect against these kinds of business closures and disruptions. Even policies with an exclusion can often extend coverage, depending on certain factors. The insurance company must demonstrate that an exception is real and applies. We suggest that every business has a copy of their policy and employ a qualified insurance claims attorney who is experienced in resolving business interruption claims and may determine if a coverage debate is possible.
WILL MY POLICY PAY ME?
There is no guarantee, but it is worth a shot. An experienced insurance claims attorney, the courts, and sometimes jurors can help resolve your claim and determine if your business has suffered due to the pandemic or business interruption. Even if your policy accounts for a lack of proof that the virus has impacted your business you may still have a chance to recover.
AM I COVERED DURING A STAY AT HOME ORDER?
Unfortunately, it is not clear until a court or jury gets involved. Civil authority actions may be an additional coverage, under your policy, that goes into effect when the state or federal authorities deny access to your business. If you do not have a virus exclusion, then you may be entitled to some compensation.
IS IT A GOOD IDEA TO MAKE A CLAIM ON MY POLICY?
If you are past your grace period with a new policy, then yes. Your insurance company should not drop you for making a business loss claim. Your insurer’s risks do not increase because you filed a claim, as this was not caused by you the business owner.
DO I EVEN HAVE COVERAGE?
One of our expert attorneys can determine that for you for free.