The 2019 coronavirus disease (COVID-19) pandemic has caused countless businesses to close down. While closures and stay-at-home orders are temporary, there is no clear path ahead for many business owners. Fortunately, some of those business owners purchased business interruption insurance to protect them in light of unexpected situations, much like this one.
Still, when it comes to COVID-19, whether or not you can make a claim under your business interruption insurance policy will depend on the terms of your contract. Some contracts address infectious diseases specifically, but others do not.
Inclusions and Exclusions
If your insurance policy mentions infectious diseases, it is more than likely claiming an exemption or exclusion. This means they are mentioning infectious diseases because they do not cover claims related to outbreaks, epidemics, or pandemics. Nevertheless, some insurers sell special coverage that includes infectious diseases by name. If you paid extra for infectious disease coverage, your insurance company has no valid excuse to deny your COVID-19 claim.
Other Avenues for Coverage
Even if your insurance policy excludes infectious diseases or fails to mention infectious diseases at all, you could be entitled to coverage. Some policies name “acts of government” as a covered peril, which means stay-at-home orders could trigger coverage. Similarly, most policies are inclusive, “all-risk,” policies, which means they cover anything that is not specifically excluded.
The language of your policy will make all the difference, so you may want to have an experienced attorney take a closer look.
Get Legal Help Today
At Lauri J. Goldstein & Associates, we are available 24/7 and offer free consultations. We are ready and willing to help business owners like you understand their insurance policies and any coverage they may be entitled to.
We also understand that insurance companies are uniformly denying claims related to COVID-19, to the extent that some states have drafted legislation to keep the insurance industry in check. With an estimated 30 million claims and up to $383 billion on the line each month, insurance companies are doing everything in their power to protect their profits.
Although the situation at hand is unprecedented and difficult for many industries, insurance companies have no excuse to violate the terms of your contract, especially as the insurance industry is one of the only ones that anticipated this kind of global health crisis.
If you’re struggling to get coverage, you may need legal help when dealing with your insurer. Luckily, our attorneys are here for you.
Call us at (866) 675-4427 or contact us online to schedule your free consultation and get a second opinion on your insurance policy.