Stamford, CT Business Interruption Insurance Lawyer
For years, business owners large and small have maintained business interruption (BI) insurance. These policies exist to keep a business afloat when it becomes necessary to suspend operations. Historically, these policies covered everything from natural disasters to civil disobedience. However, the COVID-19 pandemic has resulted in an explosion of BI claims, unlike anything the insurance industry has seen before.
They have acted aggressively in the face of these claims, issuing blanket denials for nearly all coronavirus related cases. If your claim was denied by your insurance company, let a Connecticut business interruption insurance lawyer review your policy right away.
Understanding BI insurance
Business interruption insurance is often only one part of a package of property and casualty insurance. It is rarely sold as a separate policy; instead, it is lumped in with an array of other business owner policies. Some of these include this coverage automatically, while others require a rider.
These policies generally come in two forms. The first is written on a “named perils” basis. The second is an “all risk.” Named perils policies provide compensation if the business interruption was caused by one of the events named by the policy. For example, if it specifically covered flooding, it should cover any flood-related interruptions. An all risk policy typically applies to all perils unless the policy specifically excludes them.
Why insurers are denying claims
The reasons insurance companies have given for denying coronavirus-related BI claims depends on the type of policy. For example, many named peril policies do not list pandemics in their coverage. However, these policies also frequently have language that could apply to coronavirus-related claims. In addition, there are also frequent denials for all risk policies. After the SARS epidemic in the early 2000s, many insurers began excluding pandemics.
The reality about these claims is that insurance companies are denying them even when the policy language does not exclude pandemic-related interruptions. Most BI policies have specific language that covers closures due to physical damage to a building. Often, these claims include the destruction of a business by water, fire, or some other force.
Obviously, the virus has not caused direct property damage to these businesses. Insurance companies rely on this fact to deny claims even when state or local governments have forced businesses to shut their doors due to the virus. If these denials are in bad faith, the insured could have a viable legal claim against their insurance company.
Contact us today for a free consultation
If you believe your insurer has wrongfully denied your business interruption claim, you have the right to pursue legal action against them. The attorneys of Douglas & London understand the difficult situation you are facing. Our firm is prepared to assist you throughout every stage of your claim. To learn more, schedule a free consultation with our team of Stamford, Connecticut business interruption insurance lawyers from Douglas & London right away.