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Business Interruption Coverage Exclusions Can Vary
Policyholders should be aware that business interruption coverage can vary depending on the language of the policy.
Business interruption coverage can only cover the above expenses if they were the result of a listed peril. For example, if your policy doesn’t cover damage from lightning strikes, and your building gets struck by lightning, you won’t be able to use your business interruption coverage to cover your losses.
It’s also important to note that business interruption typically does not cover damage from floods or earthquakes as those are covered by a separate policy. Business interruption also excludes the cost of repairs, utilities, and undocumented income.
What to Know If Your Business Was Affected by COVID-19
Hundreds of thousands of businesses have been negatively affected by the COVID-19 pandemic and government-mandated closures. During this time, our firm has remained as dedicated as ever to helping business owners review their business interruption insurance policies and fight for the coverage needed to keep going during these difficult times.
There is a great deal of confusion and a lack of information surrounding business interruption coverage and how the coverage should apply under a pandemic. Insurance companies will do everything they can to avoid paying out these claims and, unsurprisingly, will argue that the coronavirus did not cause direct physical damage to businesses.
Insurance companies may also argue that interruption coverage should not apply if a business never actually contaminated by the coronavirus, even if the business closed because of the virus.
However, this doesn’t mean that businesses should give up on seeking coverage under their business interruption policies. There are various types of business interruption coverage and courts from different jurisdictions might rule differently on these claims.
Having an experienced attorney on your side evens the playing field when going up against a big insurance company to fight for the coverage you deserve.
Contact our business interruption lawyers as soon as possible. We can examine the language of your policy and determine if you have a business interruption claim for COVID-19-related losses.
However, insurance companies will argue that the coronavirus did not cause a “direct physical loss”, which is typically stated in business interruption policy language.
As a business owner who has faithfully paid for business interruption coverage, it can feel like a betrayal when an insurance company uses every tactic they can to avoid paying out the coverage you deserve.
Work with a business interruption lawyer who can advocate on your behalf. Our firm has the resources, knowledge, and determination needed to hold insurance companies accountable for their responsibilities to businesses.