If you manage a business with $500,000 or more of annual revenues interrupted by the novel coronavirus and were wrongfully denied a payout from your business interruption insurance policy, you may be entitled to compensation. Contact the Kishish Law Group today to discuss your options by completing our contact form or calling us toll free at 1 (888) 609-4664.
Businesses buy insurance to guard against the unknown. So when the COVID-19 pandemic interrupted businesses across the country, causing billions of dollars of losses, business owners expected that their expensive business interruption policies would cover their lost revenues. But many insurance companies are choosing to deny claims under these policies, claiming that pandemics are not covered.
Your insurance company has a contractual duty to honor your insurance policy. Though lawmakers and businesses have called for a legislative response to this failure to pay out, these efforts to secure retroactive coverage may not prove successful. The insurance industry has promised to fight lawmakers' efforts to get businesses paid for losses, a fight commentators expect the industry will win.
Your business can't wait for a legislative response that may never come. Pursuing legal action against your insurer may be your only option to keep your business afloat. Join businesses across the country in demanding that your insurer give you what you paid for.
What is a business interruption policy?
A business interruption policy is an insurance policy that covers losses resulting from the interruption of a business. Business interruption policies are available as standalone insurance policies, but are typically sold as a part of businessowner's policy (or "BOP" policy) package or as an add-on to commercial property insurance. When a covered loss forces a business to shut down, these policies can cover operating expenses like expected revenue, mortgage or lease payments, loan payments, taxes, and payroll, among other expenses.
Does my business insurance cover coronavirus losses?
Whether your business insurance policy covers losses related to coronavirus will depend on the specific language of your policy. Common commercial property insurance as well as business interruption policies may cover situations related to the COVID-19 coronavirus.
Commercial property insurance typically covers damage to business property. While many of these policies require direct physical loss to property, insured businesses have argued that the coronavirus can contaminate surfaces and areas around a business and make business buildings unfit for occupancy.
Business interruption policies often cover losses related to a "covered peril." Like commercial property insurance policies, these policies vary in their coverage. These policies may cover loss of income, losses as a result of interruption of a supply chain, or losses due to government action. Insured businesses have argued that the interruptions caused by coronavirus, like governments requiring businesses to shut down, are covered by these types of policies.
Why are insurance companies denying coronavirus claims?
Insurers claim that these policies do not cover pandemics. Some policies do contain specific exclusions for viruses or communicable diseases. But other policies do not, requiring insurers to get creative in finding ways to deny businesses coverage.
Insurers have shoehorned COVID-19 claims into "pollutant" exclusions. Some have said that the novel coronavirus does not constitute a "physical loss," often required by commercial property insurance or business interruption policies. Others have claimed that these policies are not designed to cover government shutdowns that apply broadly.
These denials of coverage by insurers have led to political pressure on insurance companies to pay out coronavirus-related claims. Insurers are balking, claiming that keeping their promises to their policyholders could lead to even more losses for the industry.
Do I have a coronavirus business interruption case?
Contacting a lawyer is the best way to determine whether you have COVID-19 coronavirus business interruption case. We are currently accepting cases that meet the following criteria:
- Your business had $500,000 or more in gross annual revenue
- Your business was interrupted by the COVID-19 coronavirus
- Your insurance company denied your coronavirus-related claim
The experienced lawyers and staff at the Kishish Law Group can discuss your situation and help you to explore your legal paths forward. Contact us today for your case evaluation by completing our contact form or calling us toll free at 1 (888) 609-4664.
DISCLAIMER: No attorney client relationship will exist between you and our firm until we enter into a signed Retainer/Services Agreement. Completion of this document is for informational purposes only and does not constitute a Retainer/Services Agreement. The information you obtain at this site is not, nor is it intended to be, legal advice. Contacting us does not create an attorney-client relationship. In some jurisdictions this website may be considered lawyer advertising. You should consult an attorney for advice regarding your individual situation. Click here for more information.
Speak with a Business Interruption Lawyer
If your business was interrupted by the novel coronavirus and were wrongfully denied a payout from your business interruption insurance policy, you may be entitled to compensation.
Reach out to Kishish Law Group immediately to find out your legal options.