In these challenging times your small business may be adversely affecting by the Covid-19 Corona Virus. Loss of business income can cause many problems including not able to make payroll, inability to pay your rent or mortgage and inability to pay for your inventory.
There may be a solution for you in terms of your Business Interruption Insurance Policy which is designed to cover losses when your business is interrupted by some unforeseen events. The question is whether your particular Business Interruption Policy will cover business losses stemming from the Corona Virus.
Here are some practical tips that may help decide if you are covered:
1. Time to read your policy.
A. Give notice to your insurance agent of your loss.
B. Have a lawyer look at your policy to examine what is covered and excluded from coverage.
2. Business Interruption Insurance is governed by contract law and insurance law.
A. A contract is a binding agreement between the Insured(you) and the Insurer(The insurance company)
B. Insurance law and contract law interpret provisions in your insurance policy as to whether the policy will cover or exclude the interruption of your business during the Corona Virus.
C. Each policy stands on its own merit according to the laws of state where relevant as to current law.
D. Insurance companies may or may not deny the claim, however, you may have a remedy in law to enforce a claim pursuant to the contract i.e. insurance policy.
3. It could be argued that because the government shut down the economy, including all non-essential business, that the Corona Virus was not the sole cause of the Business Interruption but rather the government was the sole cause therefore the Insurance Company should be held to honor its policy and pay your claim.
If your business has been interrupted because of the Corona Virus and your insurance carrier is denying your business interruption claim please call me Attorney Lauren Winer Beck right away for a free consultation.