Do I Have a Business Interruption Insurance Claim Due to COVID-19?
Many businesses pay substantial amounts for business insurance premiums to protect their business from disaster and bankruptcy. One of the common types of insurance businesses secure is business interruption insurance.
Business interruption insurance for your Hollywood or Florida business is meant to protect businesses in the face of a disaster, such as a fire. If the business has such a policy and closes due to disaster the insurance is meant to cover operating costs and replace lost revenue to ensure the business can survive.Are You Having Trouble Getting Business Interruption Insurance in South Florida or Hollywood?
COVID-19 has caused many non-essential businesses to close while other companies have lost revenues. Many business owners who have been faithfully paying business interruption insurance are now trying to make claims. After all, a global pandemic certainly seems like a “disaster” which should be covered.
The problem is that many insurers are facing a flood of claims from businesses and since coronavirus is a novel situation, there is some confusion about what is and is not covered. Insurers are claiming their policies do not cover situations such as COVID-19 and are intended for disasters such as fires and storms.
Some companies and legal firms have filed lawsuits to contest this idea, alleging that insurers are not acting in good faith. Some states have even introduced bills which aim to compel insurers to pay businesses who have paid for business interruption insurance.
Right now, the situation is evolving rapidly and it is possible that initially claims may be rejected but in the future there may be an option to pursue a lawsuit. It is likely that claimants will need to show they filed a claim in a timely manner.What Should I Do If I Have a COVID-19 Claim?
If you have business interruption insurance and have a claim related to COVID-19, make sure you:
- Print or secure a physical copy of your insurance policy and review it
- File a claim with your insurer as soon as possible
- Document all the ways COVID-19 is impacting your business, keeping detailed records of losses and dates you’re closed
- Keep detailed records of any interactions with your insurance company, including copies of any letters they have sent you and detailed notes (including times, dates, and who you spoke with) of any calls related to your claim
- Contact an attorney to discuss your options
The reality is that by the time the insurance industry sorts out how to handle business interruption insurance claims related to COVID-19, some businesses will no longer be in operation. Businesses who are facing losses need support now.
If your company is suffering, look for local resources designed to help businesses and contact Flaxman Law Group at 1-866-352-9626 (1-866-FLAXMAN) for a free consultation with an attorney in Hollywood, Miami, or Hollywood. Charles Flaxman, our principal, spent ten years in the insurance industry before dedicating his life to personal injury and he understands the regulations impacting the insurance industry. Your initial consultation is free from cost and obligation, so you risk nothing reviewing your potential case with an attorney.