The right type of insurance coverage could save your business when the unexpected happens. Business interruption insurance can help business owners replace lost revenue and afford related expenses when disaster strikes. Covered perils generally include burglary, fires, lightning and falling objects, such as tree limbs.
If the COVID-19 (coronavirus) pandemic has made your business lose income or temporarily close down, you might qualify for coverage through a business interruption insurance claim. Many insurers try to deny COVID-19 claims, however, citing virus exclusions or lack of coverage. Financial compensation might still be available depending on your situation.
At Surrano Law Offices, we represent business owners during insurance claims and bad faith lawsuits. We may be able to help you appeal a claim denial related to COVID-19 or other unexpected perils. We offer free initial consultations and do not charge for our legal services unless we win the case. Please call (602) 264-1077 or contact us online today.
What Is Business Interruption Insurance?
Business interruption insurance covers costs and expenses related to covered perils. If a business has to temporarily close down for renovations after an electric fire, for example, business interruption insurance may reimburse lost revenue and expenses such as rent and utilities. This type of insurance can help a business keep its doors open after a natural disaster or another unexpected event by minimizing lost income during renovations, restoration or relocation.
Business interruption insurance can offer benefits to cover lost revenue based on recent pre-loss earnings reports. It could also cover expenses related to destroyed merchandise, rent at a temporary location, utilities, operating expenses, employee wages, loan payments, taxes, property repair costs and any extra expenses connected to the covered peril. An insurance policy can grant a policyholder benefits up to the policy’s limit. You may only qualify for coverage through a business interruption insurance plan, however, if the peril hurting your business is one the policy covers.
How Do I File a Business Interruption Claim?
Read your business interruption insurance policy to see what perils your insurance covers. If you wish to file a claim based on COVID-19 or related governmental regulations, such as mandatory closures of nonessential businesses, read provisions in your policy about viruses specifically. Many insurance companies revised their policies years ago to exclude viruses in preparation for the next pandemic. Unfortunately, this can make it more difficult to obtain coverage for COVID-19 related commercial losses.
To file a claim, first prepare accurate values of what the business interruption has already cost you and will foreseeably cost you in the future. You could benefit from creating a claims team that consists of accountants, an insurance lawyer and others who can help you accurately calculate your losses. Then, contact your insurance provider and explain that you wish to make a business interruption insurance claim. File your claim as soon as possible to make sure you meet any deadline your insurance provider might enforce.
What Should I Do If My Business Interruption Claim Is Denied?
Many businesses are receiving immediate COVID-19 insurance claim denials. Some of these denials are illegal. If your insurance company denies your claim, it may not be the final word. Contact an attorney right away to discuss your individual policy, virus exclusions and your options for appealing a denial. A lawyer may be able to help you initiate an internal review process with the insurance company or file an official appeal with the county courts. A lawyer could also help you file an insurance bad faith claim if the provider is not treating your business interruption insurance claim fairly.
Contact an Arizona Bad Faith Insurance Attorney
If a natural disaster, robbery, vandalism or unforeseen event has led to revenue losses for your business, contact Surrano Law Offices for assistance bringing and negotiating a commercial claim. Legal representation can be crucial during business interruption insurance claims involving the COVID-19 pandemic, as many insurers are trying to unlawfully deny claims. Contact us today to learn your rights and legal options.