Are You Entitled To Compensation for Business Interruption?
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Government officials have ordered the closing of businesses all around our country due to the pandemic – resulting in millions of American’s facing the consequences of an economic shutdown. Many business insurance policies include coverage for lost earnings. “Business Interruption” and “Civil Authority” are the insurance policies that include coverage for lost earnings due to government shutdowns. Unfortunately, businesses may face pushback from their insurance companies in receiving the coverage they deserve.
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Do you suspect that your insurance company is rejecting, delaying, or underpaying your Business Interruption insurance claim? If so, contact MW&M in order to collect the insurance claim you deserve. Even if you feel as if the insurance company may be correct, give MW&M a call to make sure all is truly in order.
MW&M is here for the business community. We want to do our part and clarify any misleading information relating to insurance claims in these uncertain times. Understanding how difficult these times are, we are offering a “no-risk” review of insurance policies for businesses impacted by the COVID-19 government shutdown.
What to expect: Business Loss Causes
An economic survey by Statistica estimates that the United States travel industry will lose an estimated $63.5 billion dollars in the upcoming year due to the coronavirus. While the travel industry is one of the heaviest hit by this pandemic, restaurants, small businesses, and local shops will see drastic effects due to quarantine. Forced business closures may be essential to preserve public health but there’s no doubt that these precautions will devastate businesses both large and small.
Because of the 2003 SARS outbreak, many insurance companies have included clauses in policies that explicitly exclude damages caused by a virus or bacteria. At MWM, we believe that businesses who pay yearly for income insurance deserve to be protected. Policy language limits coverage to losses caused by “direct physical loss of or damage to property.” The most common challenges we find insurance companies make are with policy language limiting this coverage to losses caused by “direct physical loss of or damage to property.” In these trying times, it is almost certain that insurance companies will try to use these clauses to excuse or circumvent covering losses. Allow MW&M to use its experience and resources to advocate for your business and hold your insurance company accountable for what you deserve.
What to expect from courts?
Some courts consider business losses caused by a threatened loss – for example, flood or fire – not to be physical losses. While each state varies, some businesses will not be assured to be granted an interruption coverage for the COVID 19 virus, unless it is proven that the business was directly contaminated, and forced to shut down. You may have to fight for the coverage that you deserve and MW&M is prepared to stand by your side to offer sound, nuanced legal guidance while fighting tirelessly in an effort to see your case resolved favorably.
Your insurance policy may also have “civil authority” coverage, which is special coverage for lost business income due to the order of a government entity. Many court decisions make a strong case that “civil authority” coverage will cover business losses caused by government-ordered quarantine due to the coronavirus pandemic. However, courts across the country have yet to agree upon one constant rule determining if a property has indeed endured a “direct physical loss.” Courts in a number of jurisdictions have concluded that contamination and other incidents causing a property to be uninhabitable and inoperative result in a “direct physical loss,” qualifying the business to become eligible for business interruption coverage.
Free, “no-risk” review of insurance policies
Businesses deserve advocates with the skill and resources to make sure insurance companies hold up their end of the bargain. If your business has suffered loss from the COVID-19 pandemic, contact MW&M for consultation and planning of the next appropriate steps.