Business Interruption Claims Denial
If your business interruption insurance claim was denied after a disaster that forced the closure of your business (like Coronavirus), then contact the business interruption insurance denials attorneys at Shernoff Bidart Echeverria LLP to discuss your case. We offer free business insurance claims consultations and it we take your case, you do not pay us unless we win compensation for you.
We are the leading insurance bad faith law firm in the nation. Our skilled trial attorneys file lawsuits to protect the rights of policyholders who have wrongfully been denied insurance coverage.
If your firm cannot do business anymore because of a natural disaster, a fire, or any other catastrophe, your business interruption insurance should be there for you. If your claim has been wrongfully denied, we can help you secure a business income insurance recovery and possible Bad Faith remedies as well.
California Business Interruption Insurance Lawyer
Business interruption insurance protects a business owner when disaster strikes.
While a fire insurance policy covers damage to a property after a fire, business interruption insurance compensates for lost income when a business must close down completely because of disaster-related damage. It also covers operating expenses, such as electricity, that must continue to be paid after the catastrophe.
Business interruption insurance offers protection when you need it most — when your business is temporarily unusable and has no way to generate income or profits.
A Question of Survival – Why You Need Business Interruption Insurance
A business interruption insurance claims denial can be as devastating as the catastrophe that closed your business. With the insurance coverage you’ve paid for, you can rebuild your business; without it, few businesses can survive.
Insurance companies have been known to take advantage of vulnerable policyholders and force them into bankruptcy. A common ploy to prevent paying a fire-related claim, for example, is for the insurer to charge the policyholder with arson without ever investigating the circumstances of the fire. Insurance companies may use inappropriate methods of calculating losses, in an attempt to minimize and/or delay payment of claims.
COVID-19 Insurance Coverage Alert
The novel coronavirus is having an unprecedented impact on the daily lives of everyone. Governments around the globe are scrambling to contain the pandemic. With each new day, the authorities institute stricter mandates in order to prevent the spread of the virus. These directives are creating significant, and in some cases crippling, losses for business and individuals who struggle to comply with the required closures, cancellations, and interruptions.
While the losses continue to mount, policyholders should consider the possibility that there may be insurance coverage for some of these losses. Depending on the circumstances, the ability to receive insurance benefits for these losses could provide significant relief for many businesses during this tumultuous time.
Businesses that host or organize events may have event cancellation coverage that could be triggered if events are cancelled due to exposure to the virus or in response to governmental orders. While obtaining coverage will depend on the particular policy language, businesses that were required to cancel their events should review their policies to determine if they have coverage for these losses.
Additionally, many commercial property policies contain coverage for business interruption. This type of coverage can be triggered either because of an interruption to the business itself, or because of a closure of the insured’s supplier. Both types of business interruption coverage usually required a “physical loss or damage” to property. For coronavirus losses, obtaining coverage will likely turn on the interpretation of the “physical loss” requirement in the policy.
There may also be claims that employees contracted the virus at work leading to potential worker’s compensation claims. This is particularly true for any business connected to the health care or travel industries.
There are also many businesses will be faced with liability claims for customers claiming there was a failure to adequately protect them from exposure. As a result, coverage under general liability policies could be triggered.
Regardless of the type of loss suffered, there is a possibility that an insured’s existing insurance policy could provide coverage. Accordingly, it is important that insurance coverage for these losses is not overlooked, and claims are made promptly to insurance companies.