April 29th, 2020
Business Interruption Claims and COVID19
As COVID19 struck the United States and individuals were mandated to stay at home and businesses required to close up shop for the time being, it became clear that many Americans would be facing serious financial hardships. There are certain groups however, who have been hit harder than most during this unprecedented time, those being small business owners who have been unable to conduct business for quite some time now due to the restrictions and government mandates in place.
Many business owners will attempt to overcome this financial hardship by filing a business interruption claim with their insurance carriers; however, many insurance carriers are claiming that language in these insurance policies excludes coverage for this specific type of scenario, further devastating business owners.
What is a business interruption claim you may ask - a business interruption insurance claim is essentially a claim made when business operations are suspended or impaired as a result of a loss. One would think that the COVID19 situation would be the perfect example of when a business interruption claim may be made, however, many insurance carriers, the ones to whom business owners pay hefty premiums, are asserting that language in their policies excludes coverage for these claims by prohibiting payment for business interruption which is caused by a virus or bacteria. This is just one example of the way that insurance companies are attempting to exclude coverage for this situation.
It is certain that there will be increased litigation over whether or not these types of claims should be covered, and these lawsuits are certain to focus on the precise wording and meaning of the terms in the insurance policy. While the general rule is that terms in a policy that are ambiguous should be applied in favor of the policyholder, it is evident that the insurance carriers will put up a fight to try to come out on top of these types of claims. While many insurance carriers are advertising reduced premiums and monthly payments during COVID19, many aren’t showing the same type of approach when it comes to paying claims brought by their policyholders at a time when they need their insurance most.
At Bordas & Bordas, we have vast experience in taking on insurance companies and have successfully represented numerous policyholders in their fight to obtain insurance benefits that are due and owing to them. If you believe your insurance claim has been wrongfully denied, we would be happy to discuss your claim with you.