Business interrupted by COVID-19?

Businesses across the country have been shut down as a result of the COVID-19 pandemic.  Many businesses filed claims with their insurance companies seeking protection under the business interruption provisions of their insurance policies, only to have those claims denied.  Businesses are now filing lawsuits against major insurance companies for denying coverage for COVID-19 related claims.

business interrupted and closed during COVID-10

Businesses across the country have been shut down as a result of the COVID-19 pandemic.

Business Interruption Insurance

Business interruption insurance is a type of insurance that covers the loss of income that a business suffers after a disaster.  The income loss covered may be due to a disaster-related closing of the business facility or due to the rebuilding process after a disaster.

It differs from property insurance in that a property insurance policy only covers the physical damage to the business, while the additional coverage allotted by the business interruption policy covers the profits that would have been earned.

Losses that may be covered by business interruption insurance include projected unearned profits, operating expenses and other fixed costs, business relocation expenses, employee wages, business taxes, loan payments, sanitation/disinfecting services, and the purchase of equipment for remote work.

What to do After a Denied Claim

Some insurance companies are denying COVID-19 business interruption claims, arguing that pandemic related losses are excluded altogether.  Others assert that the insurance only applies where your business suffered property damage such as during a catastrophic weather event like a hurricane.

Allen, Allen, Allen & Allen is helping business owners who have suffered losses during the COVID-19 pandemic.  Founded in 1910, Allen and Allen is the oldest and largest law firm in Virginia devoted to protecting the injured.  Our team of highly skilled insurance coverage attorneys are ready to help your business and are actively investigating COVID-19 business interruption claims.  Our investigation starts with a review of your insurance policy.  Contact Allen and Allen at (804) 353-1200 or schedule a consultation online.

You paid the premiums.  Your insurance company needs to pay the benefits.