The Covid-19 pandemic has affected the businesses’ operations globally. In search of economic relief, business owners turn to their business interruption insurance policies. They need to cover their loss of income due to the pandemic. However, business interruption policies are usually complicated; most claims are rejected based on the argument that Covid-19 is not considered a natural disaster under the business interruption coverage.
Many businesses, large and small, were ordered by the civil authorities to be closed to the public, with severe damages for millions of Americans. Lost income due to government shutdowns is included in most business insurance policies by the name “Business Interruption” and “Civil Authority” coverage. If your insurance company delays or refuses to pay your claim, you should better consult a business law lawyer.
If you need help with a business interruption claim, contact a Connecticut business law lawyer as soon as possible. A business interruption claim is a complicated insurance matter that has to be filed on time. An experienced business law attorney can assist you in completing all the required forms and gathering the documents you need to prove the losses your business has suffered during the coronavirus pandemic.
File Your Claim Now
Many business owners are confused about whether they should file a business interruption claim or not. There’s a lot of conflicting information going around. You may be hesitant to file your claim because you do not know under which coverage to file it or because you are not sure of the sum of your economic losses. In such a case, you should inform your insurance company about your intention to file your claim under all available coverage to be fully compensated for your business. A qualified professional will guide you through the procedures and clarify the details for you. The sooner you start, the sooner you may get compensated and recover your losses.
Insurance companies are prompted to discourage business owners from filing claims. Due to the unprecedented pandemic situation, they are confronted with an overflow of potential claims. Furthermore, the media lead people to believe that these claims’ chances to be successful are meager. They present reasons and explanations as to why damages resulting from the coronavirus situation are not covered. However, your insurance contract includes various clauses and exclusions that your losses may actually be covered.
The best thing for you to do is consult a qualified business law attorney to review your case for free and advise you whether or not you are eligible to file a business interruption claim.
Will Filing A Claim Raise Your Premiums?
The worry about your premiums getting higher if you file a claim is groundless. Insurance companies raise their premiums every year anyway. This is not a substantial reason to stop you from filing a business interruption claim.
Does The “Virus Exclusion” Apply To Your Case?
An exclusion is a clause in an insurance contract that states specific cases where the insurance company would not have to pay the claim. In the early 2000s, after the SARS pandemic, many policies added the virus exclusion. This exclusion allowed the insurance companies to deny compensation for physical damage to property resulting from a virus.
However, when damage is caused to your business due to the civil authorities forcing you to shut down, or your sales went down due to a lockdown, these are not excluded. The virus exclusion cannot be an obstacle to your claim filing.
Does A PPP Loan Disqualify Your Claim?
Business owners that received a federal Paycheck Protection Program (PPP) loan can still file for a business interruption claim. Your insurer’s statement that they do not have to cover your losses because the federal government covered them is false.
The PPP loan is a loan that you will have to repay. Even with PPP provided, your losses may be still adding up after that period. Consequently, the total amount of losses may exceed the amount of the PPP loan. The amount received from PPP may not be enough to cover your losses. This situation is evolving. Losses are piling up every day. Concluding, you should file your claim.
What If Your Initial Claim Gets Denied?
If your business interruption claim gets rejected, do not give up the fight. Even if you believe your insurance company’s decision might be fair, contact our experienced team of business law attorneys at Aeton Law Partners for a free consultation appointment. Our lawyers can review your options and help you get compensated for your losses and keep your business alive.