Denied Business Interruption Insurance Claims
Has Your Business Interruption Insurance Claim Been Denied?
Many businesses have felt the impact due to COVID-19 / Coronavirus. Your business insurance coverage may apply to:
- The interference of the operation of your business
- Trade disruption for losses related to quarantines (including travel restrictions and closures)
- Or even your general liability insurance
Yet many business interruption insurance claims are being denied. There are already a number of lawsuits that have been filed requesting courts to weigh in on whether your business interruption insurance will cover losses due to the impacts of the coronavirus pandemic.
Is this YOU TOO?
If you are an Owner / Operator with Business Insurance that you have paid in good faith and your claim has been denied, you may still be entitled to benefits.
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Business Interruption Claims & COVID-19
Your business coverage insurance policy may be worded unfairly, confusing, or vague. If your claim was denied, we want to hear from you.
We are working hard for our community to make sure businesses are being paid fairly during this COVID-19 / Coronavirus Pandemic.
It’s little consolation to know that you’re not alone. Lawsuits have already been filed seeking a judicial decision on whether business interruption insurance will cover COVID19-related losses. You don’t have to face this on your own. Bighorn Law can help you if your business interruption insurance claim has been denied.
Please don’t wait. Time may be limited to challenge your claim. Remember: if we don’t win, you don’t pay. We’re on your side and we want to help.
Post-COVID19, we want local businesses to be able to get back on their feet and thrive.
If your business interruption claim is denied, there are a few immediate steps you should take:
- Save your documents: The more information you have, the better. The insurer should provide you an explanation of why it is denying your claim.
- Review the wording of your policy: Every policy is different. Review your policy to understand your specific coverage and what you are entitled to.
- Talk to an attorney at Bighorn Law: Learn about your legal rights and recourse immediately. Time may be limited, so don’t wait. Tell us your story.
When small businesses purchase business interruption insurance, it is usually intended to cover the risk of a wide variety of losses:
- Projected unearned profits.
- Operating expenses and other fixed costs, including replacement machinery.
- Temporary business re-location costs.
- Employee wages, including benefits.
- Unforeseen extra expenses, beyond the fixed costs, such as re-training costs.
- Civil authority order due to government-mandated closure of business premises that directly cause financial loss.
- Business taxes.
- Loan payments.
Businesses that expected they were taking the responsible step by securing business interruption coverage are now finding themselves unfairly burdened with damages and costs resulting from insurance company’s failure to cover these losses resulting from COVID-19.
Some policies have wording that excludes loss from certain reasons (sometimes referred to as “perils.”) For example, some policies say they don’t cover losses from:
- civil authority;
- viruses, bacteria and fungi; or
- pollutants (which some courts have found to include viruses).
However, even if your policy contains one or more of these exclusions, you may still be covered for your losses from COVID-19. In insurance law, there’s a principle called the reasonable expectations doctrine. This principle says that it’s not just the text of the contract that matters, but also the reasonable expectations of the policy holder. So if there is some ambiguity in the policy, some courts use this principle to rule in favor of more coverage rather than less.