Why You Need to be Considering Business Interruption Insurance
As you seek remedies under your business interruption loss coverage, you should anticipate that the insurance companies may be more oriented towards denial. However, the likelihood of a successful result will be increased when you arm yourself with an understanding of your policy and submit a claim on a timely basis. The sooner you start the process, the better. You might not be able to prevent pandemics like the spread of COVID-19, but you can potentially find relief from a loss of business income.
What Is Business Interruption Insurance Coverage?
The general purpose of business interruption insurance is to make the insured party whole from the damaging event. Business interruption and expense loss must be supportable. In other words, you need to document it to ensure it’s not speculative.
Does My Policy Specifically Cover Business Losses Associated with COVID-19?
Currently realized, or anticipated, loss of business income is a significant concern for owners and other stakeholders in light of COVID-19. Relatively few insurance policies specifically outline coverage for outbreaks of disease. Most are either vague or include no such language at all. Certain policies include coverage for “Interruption by Communicable Disease.” Even with this language included, some policies still exclude contamination due to a pathogenic organism, bacteria, virus or disease. Some exclusionary language may not explicitly reference “viruses,” which might actually help with claims associated with physical property damage related to the COVID-19 outbreak. As such, a detailed review of the policy by a qualified policyholder lawyer is
paramount.
What If I Don’t Have Coverage for Interruption by Communicable Disease?
This may be more challenging, even without the specific exclusion discussed above. On the other hand, there may ultimately be more coverage under policies that do not contain the communicable disease coverage limits. Remember that business interruption claims require physical loss or damage for coverage to be triggered so any claim would need to be documented in that context.
Do I Have Coverage If the Government Requires Me to Shut My Doors?
Many policies include language and restrictions related to actions of civil and/or military authorities. Generally, actions such as a declaration of a state of emergency do not change policy terms. However, if a civil authority requires you clean or disinfect your property, then the damage to your physical property is more easily supported, which again is required to recover business interruption losses
If the insurance company denies or undervalues your business interruption insurance claim, you need the services of a law firm that understands the insurance industry and federal insurance laws. At the Voss Law Firm, we regularly help business owners who have experienced a prolonged business interruption and we can help you too. Call one of our Texas insurance claim attorneys today at 888-614-7730 for a prompt and free consultation.
