Can I Make a Claim for Business Interruption Caused by Covid-19?

The COVID-19 pandemic had a huge impact on each and every person throughout the world in one way or another. Not only did it impact people on an individual level, but it also affected businesses everywhere. Larger corporations securely covered by safety nets thrived—and in some cases were in an even better position than they were prior to 2020—while many small businesses suffered greatly and eventually had to close their doors.

As a result, many small businesses have attempted to make claims for business interruption insurance in order to receive the help they deserve. Let’s dive a little deeper into what business interruption insurance is, who it’s for, and whether or not you can make a claim.

What Is Business Interruption Insurance?

Business interruption insurance is put in place to help business owners with lost revenue during periods of difficulty, or when they aren’t able to operate fully or at all. This might include events like a fire, theft, or weather-related damage. Depending on the wording of the policy, however, many insurance companies may say losses due to the pandemic aren’t covered.

How Can Business Interruption Insurance Help?

Business interruption insurance allows businesses to recover physical damages, which means emotional and mental anguish are not included. While the business is closed, lost profits can be recovered, likely based on the figures from the month before the accident or disaster.

In order to help the business keep their employees while closed, the claim may help cover their wages as well. Additionally, fixed costs like rent and utilities, any necessary repairs and relocation costs, as well as miscellaneous expenses after the event may all be recovered by filing a business interruption claim.

Should I Make a Claim?

If your business suffered during the COVID-19 pandemic, you can certainly make a claim. It can be complex, however, because many insurance providers argue that the policy was intended for specific events outside of the control of the business and never put in place to cover losses during a government shutdown intended to control a virus.

Insurance adjusters will likely ask you questions that can pinhole you into giving an answer that could work against your case, ultimately getting it dismissed. Be sure to reach out to an experienced business interruption attorney at THE702FIRM so that they can deal with your insurance company and help you navigate the nuances and complexities of these uncharted waters. Your specific policy may also have time restraints, so act quickly to ensure you’ve stayed within your timeframe.

Keep in mind that if you’ve already filed a claim and been denied, you can dispute it, so it’s a good idea to have a knowledgeable legal team on your side. Additionally, if you feel like your insurance company hasn’t offered you the amount you deserve, be sure to reach out to an experienced lawyer to help you fight for the compensation you deserve.