Many cities in the United States are suspending business operations in an effort to contain coronavirus (COVID-19). If you’re a business owner, you might be losing a lot of money, and you may be wondering whether or not your business interruption insurance provides coverage.
Now is a better time than ever before to understand your insurance policy. If you need assistance, our business litigation attorneys at MR Civil Justice are here for you.
The Language Surrounding Natural Disasters
Most business interruption policies cover interruptions caused by natural disasters. Unfortunately, this language tends to lean towards physical damages, such as those sustained in a hurricane or fire. Whether or not your claim for coronavirus is approved will depend largely on how you, your insurance company, and ultimately, the courts interpret your policy.
Kinds of Coverage To Look For
Because many businesses are filing claims as a result of COVID-19 closures, you can expect insurers to do everything in their power to avoid paying claims. As such, you should discuss your policy with an attorney and prepare to take legal action.
Types of coverage that might help your claim include:
- Coverage for a property that is uninhabitable or otherwise unfit for use
- Coverage for disruptions of customers or suppliers
- Coverage for limited access to your property due to “civil authority”
- Express coverage for communicable or infectious diseases
- Any other coverage that does not require physical damage to your property
Unfortunately, it is too late to add coverage for infectious diseases, and the inclusions and exclusions of your policy may exclude this kind of coverage. Nevertheless, some policies do not specify at all and the strength of your claim will depend on the language of your policy and interpretation by legal professionals.
Actions To Take
At MR Civil Justice, we can help you review your policy and identify your potential for a claim. While every case will be different, we encourage you to document the effects this pandemic has had on your business.
You can also call us at (214) 739-0100 or schedule a consultation online.
**Please note that the COVID-19 pandemic is an ongoing and rapidly evolving situation.
For the most up-to-date and accurate information, check-in with the Centers for Disease Control and Prevention (CDC), your local mayor, state governor, and federal lawmakers; and the World Health Organization (WHO).