Recovering Losses Due to The Pandemic
Many business owners who were deemed “non-essential” had to put their business on hold due to social distancing and stay-at-home restrictions. While Missouri and other states are slowly easing restrictions, businesses have a long road ahead from being out of business since March. If the COVID-19 pandemic caused your profits to fall to the wayside, you might be entitled to receive compensation for your losses. Here’s what you need to know.
Understanding Your Insurance Policy
The SARS outbreak back in 2000 had insurance companies pay out millions of dollars in business interruption claims. As a result, insurance companies revised their insurance coverage options to exclude illness outbreaks. Unfortunately, these pandemic clauses in insurance policies have caused business owners to be denied payouts.
However, even if your claim was denied, you still may be able to receive compensation for your losses. Read on to learn how to handle a denied business interruption claim.
What Are Your Options After A Denial?
If your insurance policy has a pandemic clause and excludes filing a claim for communicable illnesses, there may be other clauses in your policy that support your claim to which you can challenge a denial. Here are some examples:
- Contract Language: Some limitations may exclude communicable “bacterial” illnesses. However, COVID-19 is a virus, so it could be argued that it should be covered.
- Evidence of COVID-19 and Its Impact on Your Business: If an employee tested positive for COVID-19, and you had to close your business as a result, this may support your claim for receiving compensation.
- Claims for Civil Authority Interruption: Some business interruption policies cover losses if a government action has disrupted access to your property or clientele. For example, if your business was considered non-essential and was ordered to shut down, you may be able to challenge a denial in this case.
Contact A National Business Interruption Lawyer
FIling a business interruption claim is complicated and can be a daunting process for anyone who is not experienced in dealing with insurance companies. If you were denied coverage after filing a business interruption insurance claim, we can help. Our attorneys understand all the tactics and loopholes that insurance companies use to deny claims. When it comes to getting your business back on track, we’ll be with you every step of the way.
Call Peterson & Associates, P.C. today at 1 (816) 683-3278 to speak with an attorney about your potential case. We are offering consultations via phone, email, and video conferencing for your convenience.