Brooklyn Business Interruption Insurance Lawyers
The pandemic wreaked economic havoc worldwide. Although you had to shut down your company, you were confident your insurer would cover some of your losses through your business interruption policy. However, your carrier has denied your claim, as it has of so many other businesses. Now you are unsure where to turn.
The wording in every commercial insurance policy is different, and requires careful, professional review. These documents often run to 200 pages or more. However, always file a claim; even if the insurance representative informs you– it is not covered.
In the Covid-19 crisis, insurance companies are not acting out of character. Their business model is to pay out as little as possible. Insurers know a fair percentage of those whose claims are denied will not pursue the matter further.
If your claim is denied, it is time to seek legal representation. A Brooklyn business interruption insurance lawyer at Douglas and London can evaluate your policy, letting you know your options. Trust an expert because this is an area of insurance law and regulations that is evolving rapidly.
Direct Physical Loss or Damage
Most business interruption insurance policies require the property to have suffered “direct physical loss or damage” to qualify for coverage. That is not usually the case with businesses unable to operate due to coronavirus. Such policies focus on dealing with damage from fires, and storms.
It is the physical damage triggering the coverage, not the business interruption per se. However, it is arguable that the coronavirus affects the physical property due to potential contamination, the required remediation, and constant sanitizing.
Virus or Bacteria Exclusion
Many policies specifically exclude business interruption occurring because of viral or bacterial microorganisms capable of causing disease. Insurance company payouts and losses during the SARS outbreak in the early 21st century prompted this exclusion.
New York is among several states currently considering legislation that would roll back this exclusion and require insurers to honor these policies. If such legislation does pass, expect a court challenge from them.
Civil Authority Provisions
Under a policy’s civil authority provisions– standard in most policies– businesses are covered if there is a civil authority order prohibiting access. Again, much depends on policy wording, as some insurers may state that any property damage must involve a covered peril.
Other Types of Coverage
By delving into the policy, an attorney may discover different types of coverage that can assist the client financially. These may include:
- Crisis management
- Event cancellations
- Travel cancellations
Contact our team of Brooklyn Business Interruption Insurance Lawyers
If your insurance company denied your pandemic-related business interruption claim, you need the services of a business interruption insurance attorney at Douglas and London at once. Schedule a confidential, free consultation by submitting our online form or calling or texting 24/7 to arrange an appointment.
Our dedicated attorneys will keep you abreast of legal changes and decisions regarding coronavirus and business interruption insurance. Because we work on a contingency basis, there is never a fee unless you receive compensation. Hablamos Español.