Insurance Coverage Claims

Business Interruption/Income (BI) Insurance

BI insurance is intended to compensate for income lost during the time necessary to repair physical damage to covered property and may entitle the insured to recover additional expenses that would not have been incurred during the ordinary course of business.  In many policies, insurers require physical loss or damage to the covered property.

Coverage is triggered by:

• A slowdown or shutdown of a businesses operations AND…
• The slowdown/shutdown was caused by direct physical loss of or damage to property which is the result of a covered cause of loss AND…
• An actual loss was sustained.

Why are insurance companies denying COVID-19 business interruption claims?

Because most business policies are a series of exclusions tied together to make it appear that there is insurance coverage for all losses. In reality, the policies contain lots of exclusions and ambiguous language that the insurers use to avoid paying claims.  However, many of these policies, especially true business interruption and all-risk policies, should provide compensable coverage for businesses who have suffered losses from Coronavirus shutdowns.  This is particularly true when there has been a governmental order (also known as “civil authority”) closing businesses or geographic areas.

What do we do?

We represent businesses who have purchased business income insurance where the insurance company denies the claim.  We work with businesses to help them recover losses that were insured but not paid.  Was your business income insurance claim denied by your insurer?  If so, feel free to contact us for a complimentary review of your policy and claim.  Our attorneys will review your insurance and losses at no charge.

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What comes after COVID-19? Finding out just how much your business insurance might NOT cover.