COVID-19 Business Interruption Coverage Denial Investigation

The global impacts of the COVID-19 pandemic continue to result in economic losses to businesses and individuals around the world. Additionally, governments are mandating that individuals quarantine themselves to contain the spread of the outbreak. These actions have resulted in changes in consumer behavior, and in turn, negatively impact many businesses. Here, the attorneys at Peter Angelos, P.C. investigate claims of denial of business interruption insurance and how to obtain compensation.

Understand and Evaluate Your Business Interruption Insurance Policy 

Business interruption insurance is a form of insurance coverage that compensates your business for lost income and extra expenses that occur as a result of a covered peril or disaster, such as the effects of the novel coronavirus. In general, this insurance is used to cover loss of income, as well as extra expenses needed to financially recover from this event. A time limit is also commonly set for business interruption policyholders, such as a 12-month period given by the insurance agency to help businesses find their footing and reduce the likelihood of overwhelming debt.  

Additionally, some business interruption policies include civil authority provisions that may provide coverage for covered causes of loss in connection with a government order prohibiting access to the insured business. While this is an unprecedented time in our nation’s history, it is also important to note that these changes bring up a complicated discussion in regards to businesses. Business interruption insurance is generally used for physical damage to a business, such as if a massive storm damaged a business, and the local government blocked off the area for repairs. However, in the midst of COVID-19, many businesses may be denied compensation.

Take Action If Your Claim Has Been Denied

While many business interruption insurance policies have exclusions around claims related to the functionality of their business after a disaster, insurance companies are facing serious backlash after their denial to approve many businesses’ requests for business interruption claims. After the SARS outbreak, changes were made by multiple insurance agencies to include exceptions in policies involving viruses or bacterial outbreaks. In response, class action lawsuits as well as individual cases have since been filed in the midst of this pandemic, as insurance agencies refuse to uphold their responsibilities of coverage for businesses. In this class action suit, the policyholders’ business interruption insurance either included or did not explicitly exclude coverage related to viruses such as COVID-19. If your claim has been denied, discussing your options with a qualified attorney, such as those at Peter Angelos, P.C., may help you get the compensation you deserve. 

Discuss Your Rights With the Class Action Lawsuit Attorneys at Peter Angelos, P.C.

Businesses seeking to file claims for business interruption may be denied due to policy exemption wording. Even if a policy claim is pending, businesses may also be forced to prove that the COVID-19 outbreak or government restrictions were the main sources of financial loss for their business. 

With proposed legislation in multiple states, previous claims are likely to be reviewed as full financial implications of the COVID-19 pandemic emerge. At Peter Angelos, P.C., it is the top priority of our attorneys to provide ample representation for your business and help you recover from this tremendous financial loss. If your previous business interruption claim has been denied, or you would like to discuss your rights with professional counsel, contact the Law Offices of Peter Angelos, P.C. today