COVID-19, also known as the Coronavirus pandemic, has already had a terrible impact on both small and larger businesses across the country. Due to the Coronavirus pandemic, companies are facing unique challenges to their businesses, including supply chain interruptions, employee and customer safety concerns and government regulations, restrictions and shutdowns. Wide-impact catastrophes like this pandemic will cause tremendous and long-lasting economic damage.
Some business owners, may be able to seek help from their insurance companies. Some commercial insurance policies have a type of coverage known as “business interruption coverage” that insures for losses caused by the Coronavirus pandemic. However, business interruption clauses in insurance policies are often complicated and occupy a unique area of insurance law. Understanding the language of your particular insurance policy is the important first step in the process of seeking insurance coverage in the time of this virus outbreak.
Some business insurance policies contain exclusions that could limit or outright eliminate coverage. One of the most common challenges involves insurance policy language that limits coverage to losses caused by “direct physical loss of or damage to property.” In other instances, an insurance clause could exclude payment “for loss or damage caused by or resulting from a virus, bacterium, or another microorganism that induces or is capable of inducing physical distress, illness or disease.” Other policies, however, only exclude from coverage losses caused by bacteria, but not viruses like the Coronavirus. Since the attacks of September 11th, some insurance policies have provided “civil authority” coverage—a special type of coverage for lost business income when your business is closed by order of a government entity. Even though these businesses had civil authority coverage, insurers denied their claims, arguing that the government orders did not specifically order that those businessesbe closed. Lastly, some policies contain time limits that require the insured to file a claim within 30 to 60 days from your business closure.
Here are some very important documents and information you need to gather:
- Complete copy of the insurance policy (or policies) for your business
- Date your business closed
- Reason your business closed
- Whether the business was contaminated by COVID-19 infection (or could have been contaminated)
- Profit, payroll, and other key business metrics
Contact Us for More Information
If your business has suffered business interruption during the COVID19 pandemic, contact our office to discuss your potential claim. Your initial consultation is always free and confidential. We will review your information, answer your questions, and determine if you have a valid case at no cost to you. Contact the DuBose Law Firm by calling (888)-288-6593 or by emailing info@duboselawfirm.com
