Smithtown, NY Business Interruption Insurance Lawyer

The coronavirus pandemic created a unique set of circumstances that disrupted routine operations for millions of companies across the United States. Business interruption insurance is designed to kick in when physical property damage, often accompanied by a civil order of authority, shuts down a business for a period of time during which no income can be made. Business insurance can keep payroll afloat, vendors paid, and may even cover temporary relocation expenses that are necessary for survival.

If your insurance provider has denied your claim during the COVID-19 crisis or another type of natural disaster, it’s worth having a Douglas and London business interruption insurance lawyer take an in-depth look at your policy to see if your insurer is acting in bad faith.

Bad Faith Insurance Claim Denial?

A bad faith insurance claim occurs when an insurer attempts to renege on the obligation to pay a legitimate claim. It may also occur when the insurer delays, fails to investigate within a reasonable period, or minimizes the amount paid.

Insurers act in bad faith when they:

  • Fail to disclose policy limitations and exclusions to policyholders before the purchase has been made
  • Require unreasonable amounts of evidence to verify a claim
  • Misrepresent the contractual language to avoid paying on a claim

If you suspect bad faith, you’ll be happy to know it costs nothing to speak with Douglas and London’s Smithtown, NY business interruption insurance lawyers. We work on a contingency basis, so you only pay for legal services if your claim succeeds. It’s worthwhile to find a legal team of experienced trial attorneys who aren’t afraid to stand up to big insurers and pursue maximum compensation.

Does Coronavirus Count as Physical Damage?

Insurers often require “physical property damage” in order for business interruption insurance to kick in. For business contingency insurance, the damage need not be to your own property, but to a supplier or adjacent facility’s, which by default affects your own. If your policy has civil authority coverage, you could be eligible for insurance when the local government completely shuts down the area in which you operate, preventing you from getting to your business.

Traditionally, business interruption insurance has been applied during natural disasters like fires or tropical storms. Additionally, we fought for the rights of policyholders following the 9/11 terrorist attacks and amid the SARS pandemic, when many businesses were out of operation because of unforeseen circumstances.

Whether coverage extends to the insured amid the COVID-19 outbreak is still up for debate, but will likely boil down to exact policy language. It is important to call a business interruption insurance attorney as quickly as possible – before your insurer rewrites the rules to get out of paying for claims related to pathogen exposure. 

Contact Smithtown Business Interruption Insurance Lawyers

Douglas and London will serve as your legal advocate in negotiating the complex world of insurance claims, whether your claim has been delayed, denied, or not yet filed. Our team possesses the skill, the experience, and the resources to pursue a successful business interruption claim. Since we anticipate an enormous number of businesses to file a BI claim because of the widespread COVID-19 shutdown, we recommend that you file yours as soon as possible to avoid lengthy delays in receiving your payout.

Questions about whether you qualify for a BI claim? Call our law offices today for a free consultation with a knowledgeable attorney.