While many business interruption insurance policies explicitly have exceptions for viruses and pandemics, some business interruption insurance policies do not have exceptions for viruses and pandemics. If you have had to temporarily close down your business due to the coronavirus pandemic, you might be wondering whether you can make a business interruption claim for your losses.
Some business owners have filed claims for business interruption insurance when their policies do not have explicit exceptions and have found that their claims have been denied. Has your business interruption insurance claim been denied? Leader, Leader, & Zucker, PLLC is an insurance claim denial law firm in Fort Lauderdale, Florida that may be able to review your policy, review your claim, and assist you with litigation if your insurance company has wrongfully denied your claim.
According to the Insurance Journal many business owners have decided to pursue litigation against their insurance companies when their business interruption claims were denied. Insurance companies claim that they never intended to include pandemics in their business interruption policies, but business owners who have policies with no specific exceptions in place claim that their business interruption claims should be honored. The disputes are likely to go into litigation. Several states have already posted notices that insurance companies have a responsibility to honor claims even during the coronavirus pandemic. Other business owners have taken matters into their own hands and are taking their insurance companies to court.
So, how do you know if your business interruption policy might be required to cover costs of business interruption due to the coronavirus? It depends largely on the wording of your policy. If your policy explicitly excludes pandemics, you may not be able to make a claim. However, some policies have language that would cover business interruption if a government order limited business activity in your community. Some business owners have been making claims for coronavirus interruption under these policy clauses.
Some insurance companies have been denying claims under the premise that business interruption insurance only covers a business if the business suffers physical damage. However, several states have come forward requiring that insurance companies honor their business interruption policies. Still, some insurance companies looking to avoid massive claims are looking for any possible loophole they can find. According to the Insurance Journal, business interruption losses from just small businesses in the U.S. could be as high as $383 billion per month.
Would suing your insurance company get you the claim you may deserve? Again, it largely depends on the wording of your individual policy. Leader, Leader, & Zucker, PLLC is a denied insurance claim law firm in Fort Lauderdale, Florida that works with businesses who may be facing challenges during this difficult time. If you have questions about your rights, reach out to our denied insurance claim law firm today. Or, reach out to USAttorneys.com to get matched with a denied insurance claim lawyer at Leader, Leader, & Zucker, PLLC today.