Even if your insurance carrier told
you that it would not cover your pandemic-related business interruption (BI) claim,
it is critical that you file anyway. The documents required to file a BI claim will
provide essential information about your losses and expenses.
While insurance companies are
currently refusing to honor most coronavirus-related BI insurance claims, that
could change. New York and other states are considering legislation that would
broaden such coverage retroactively. For example, most policies exclude
business interruption due to viruses or bacteria. If such legislation is passed—
and insurance companies are fighting hard against these bills— COVID-19r related
business interruption may prove covered.
A New York City business interruption insurance lawyer at Douglas & London understands the trauma this unprecedented situation has caused for many business owners, and we will protect your rights while pursuing the compensation you deserve.
Business
Interruption Insurance
Business interruption insurance is
generally concerned with property damage. It is triggered when the physical
structure of the building is damaged. Fires, hurricanes, and flooding are the
most common reasons for filing BI claims, at least until the coronavirus
arrived in New York.
This insurance is designed to replace
lost income when the physical structure is unusable. The coronavirus does not
harm physical structures, which is one reason insurers are denying claims.
However, these policies often include
other reasons besides property damage for triggering a claim. These could
include a civil authority shutting the business down, which is what occurred
during the lockdown.
Documentation
When collecting the necessary
documentation, make sure to include only those losses relating to the pandemic.
In addition to this paperwork, you must document the date the business had to
close due to government mandates, whether local or statewide. Include any dates
in which the pandemic severely affected your business if you were allowed to
reopen.
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Financial Documents
Gather the following financial
documents to support your BI claim:
- State and federal
tax returns - General ledger
- Monthly profit
and loss statements - Current annual financial
statements and those for the past several years - Inventory list
- Invoices
- Purchase orders
- Supplier
contracts - Payroll records
- Bank statements
- Loan payments
If your business had a budget or
projections prepared before the shutdown, submit that information as well. This
can demonstrate how well the company was expected to perform before the
pandemic arrived.
Separate Covid-19
Expenses
Document any expenses specifically
relating to COVID-19. This may include the purchase of personal protective
equipment (PPE) for employees, the costs of disinfectants and other cleaning
supplies, and any equipment purchased to assist in allowing employees to work
from home.
Employee Records
Keep detailed records of the number of
employees you have, their monthly hours, and how those numbers changed before
and after the pandemic. You must include those employees whose hours were
reduced, and those you had to lay off.
If you had workers who could not
perform their jobs due to testing positive for the coronavirus, include that
information. If any employees took leave under the provisions of the Families
First Coronavirus Response Act, note why such leave was taken.
Paycheck
Protection Program
If your business received funds from
the Paycheck Protection Program (PPP) to cover employee wages, make sure to
keep accurate records. You will need to list when they were received and the
amount. You must also show how the monies were used. When the notice of
forgiveness is received, keep track of the date.
Contact us at
Douglas & London for a free consultation
If the pandemic has severely
interrupted your business, you need our team at Douglas & London. Schedule a
free, confidential consultation by completing our online form or calling or
texting us 24/7. Bring your insurance policy to the meeting, where a lawyer
will review it and explain your options.
Our
dedicated attorneys have recovered more than $20 billion in settlements and
verdicts for clients. There is never a fee unless you receive compensation, as
we work on a contingency basis. Hablamos Español.
