Does Business Interruption Insurance Cover COVID-19 Losses?
With COVID-19 disrupting Texas businesses significantly, owners are losing revenue and suffering added costs. If you have business interruption insurance, filing a claim for these types of losses is the next practical step.
However, confusing policy language, hidden exclusions, and claim denials make the situation even more frustrating. In this post, the Steven Wright Law team will help you learn more about filing a claim for coronavirus-related losses through your business interruption insurance policy.
Why Do Insurance Companies Deny Coronavirus Business Interruption Claims?
Insurance companies (and their lawyers) are masterful when issuing reasons for denials. Even though they said they would be there when you are in trouble, it can feel more like they are looking for ways NOT to give you money when you need it.
Here are a few reasons that insurance companies are issuing for coronavirus-related business interruption claims:
- Force majeure: When unexpected circumstances beyond control arise, this situation can render a company unable to meet its contracts. In this case, insurance companies are citing force majeure as a reason to deny benefits.
- No physical damage: Insurance companies note that business interruption policies only provide benefits when a policyholder’s commercial property sustains physical damage. According to them, COVID-19 is not a physical loss.
- Communicable diseases not covered: Insurers also highlight the fact that policies do not cover lost income from an economic slowdown. As such, you can expect that they will likely deny you coverage on this fact alone.
When filing a business interruption insurance claim, all hope is not lost, even if insurance companies are pushing back during these unprecedented times. There is an appeals process to exhaust, as well as the opportunity to take your case to civil court.
How Can I Take Proactive Steps Toward Obtaining Benefits?
Before accepting the insurance adjuster’s offer or denial, make sure that you know your options first. Let’s look at a few proactive steps that you can take starting today.
Review Your Policy Carefully
Call your insurance company and request a copy of your policy, if you do not already have one. Look for the types of losses they cover, as well as its exclusions. Also, ask your lawyer to review the policy since the language can often create confusion.
Build Your Case with Evidence
Proving the impact that COVID-19 has or had on your business is critical to the success of your claim. Prepare a file that details the financial impact of the pandemic. Be sure to include your lost income, customer retention rates, and incidental expenses incurred.
Who Can Evaluate My Claim for Free?
If you are a business owner wanting information about coronavirus-related losses, speak with an attorney in Plano, Texas. It is for this reason that Steven Wright Law is extending a FREE claim evaluation to affected business owners.
Learn more about how to keep your business open during COVID-19 with a licensed lawyer. Request your free claim evaluation by calling (214) 441-6473 or sending a callback request here.
Published with StoryChief