Who Can File a COVID-19 Business Interruption Insurance Lawsuit?
COVID-19 shutdowns and restrictions continue to wreak havoc on the economy. Thousands of businesses have suffered extensive losses, pushing many to the brink of insolvency. Those who purchased business interruption (BI) insurance for unprecedented disasters have mostly been left high and dry by their carriers.
While some policies have clear “virus” or “communicable diseases” verbiage designed to exclude coverage for viral outbreaks, many more have ambiguous language. The insured believes that this ambiguity should indeed indemnify their company’s pandemic-related financial losses.
Filing a lawsuit for a wrongly denied claim
Ultimately, business owners have the right to sue their insurance company if their BI claim was unlawfully rejected or denied. A COVID-19 BI insurance lawsuit can seek payment for the benefits provided in your policy, as well as additional compensation for related losses until your business is fully operational again.
Insurance companies that provide coverage for commercial and residential properties owe a legal duty of good faith to their policyholders. If this covenant is breached, the insured can pursue a civil lawsuit based upon breach of contract and bad faith. The courts will decide the outcome of these lawsuits, and every state has different case law, regulations, and statutes– so that the results may vary dramatically.
Business Interruption policy language
Who is eligible to file suit for a denied BI insurance claim? Insurance policies are legal contracts, and as such, it’s all about the wording of policy inclusions, exclusions, and extensions. Insured parties should have their policies closely scrutinized by a qualified attorney who is well-versed in insurance litigation.
The strength of your claim will hinge on the specific language of your policy, and if provisions indicate loss of use of property from a pandemic like COVID-19 should be covered.
What to bring to your legal consultation
A New York City business interruption insurance attorney at Douglas & London can determine your best legal options in the event your BI insurance claim was denied.
To assess your situation, and evaluate the next steps for moving forward, we ask that you have the following documents for your first consultation:
- A copy of the business interruption claim sent to your insurance company
- A copy of their written denial or rejection
- Documentation that substantiates your business losses caused by COVID-19: this includes a minimum of 2 years’ worth of financial records such as POS reports, past profit and loss statements, sales tax filings, tax returns, bank statements, payroll records and adjustments, receipts for maintenance, and extra services and expenses incurred because of closures and government shutdowns.
You shouldn’t have to go to court to get the business interruption benefits you’ve paid for all these years, but thousands of business owners have been compelled to file suit for wrongly denied claims.
Contact us for a free consultation
This is an extraordinarily unsettling and challenging time for businesses everywhere, and now more than ever, it’s paramount to protect your rights by working with a trusted legal team.
Contact Douglas & London to discuss your business insurance claim today. The consultation is free, and we never charge any fees until a successful settlement or verdict is won on your behalf.