COVID-19 Injury Lawyers

Business Interruption Coverage and COVID-19: Know Your Rights as a Small Business Owner

Posted July 20, 2020

When we think about the novel coronavirus causing fatalities across the nation, we think of lives lost. But another victim of the virus is that of business and livelihoods lost for small business owners across the United States. According to the American Property and Casualty Insurance Association, the COVID-19 closures are costing businesses with fewer than 500 employees from $393 billion to $668 billion per month. But as a small business owner, can you collect on insurance to recoup losses? That’s been the debate in state and federal courts. Read on to learn about business interruption coverage.

Business Interruption Coverage

Business interruption insurance covers the loss of income that a small business suffers following a disaster. In general, this insurance only applies after a physical disaster which causes the business to close.

However, President Donald Trump announced at an April 10 press briefing his support for claims made by business owners who purchased insurance policies without any virus exclusions. 

Now, the question remains who will be paying for the loss of income following COVID-19. It is believed eventually Congress will help devise a plan where the government, insurers and plaintiffs will work together to offset these costs.

Unfortunately, many business owners are now dealing with denied business interruption claims with little to no reasoning why. The COVID-19 closures have led to loss of business with no hope of reopening. Even for those who purchased commercial insurance all risk policies, the payouts have not happened. 

Businesses Impacted by COVID-19 Closures

Many states are beginning second round closures, limiting small businesses on how many patrons they may serve, if they can open, and how life will resume. Those most impacted by the COVID-19 closures include:

  • Restaurants
  • Bars, nightclubs, and entertainment facilities
  • Retail
  • Manufacturers of nonessential items
  • Gyms and fitness centers
  • Salons and barber shops

Denied Business Interruption Coverage? We can help.

If you have been denied your business interruption coverage without reasoning by your insurance provider, you need legal guidance. Right now, many insurers are denying the claims at face value without justifiable reasoning. You must not stand for this. We will review your contract with your insurance provider to break down the terms of your policy and see if legal action can be taken against your provider. 

The time to act is now. Your small business is the backbone of the American dream. Don’t let the greed of insurance companies stop you from reaching your potential. You may have a breach of contract claim.

Contact our nationwide COVID insurance attorneys today. We fight for your business, your family, and you.

Posted in COVID-19.