Businesses across the United States have watched in horror as COVID-19 has caused shutdowns for weeks. The impact has been devastating for retail, manufacturing, entertainment, hospitality, and even technology companies. This pandemic is affecting small and big businesses alike. As these places struggle to stay afloat, they are also turning to their insurance policies for extra cash.

Insurance Policy

Many insurance policies and endorsements cover losses due to business interruption. However, many insurance companies do not consider COVID-19 business loss as “physical damage”. Therefore, they are denying claims. This even includes people with an “All Risk” policy. Even those policies can exclude coverage for virus, contagious disease, or bacteria.

Reading the Fine Print

The first thing you should do is request a complete certified copy of your insurance policy. The one you have is just a partial copy. Usually, you need to make a written request to your insurance broker or company. The complete copy has every single clause, provision, exception, and/or inclusion.
After receiving it, scan for phrases like “cause of loss to trigger coverage”. This phrase can help determine coverage. Also, check fo these coverages and how long they are covered for:

• Business interruption
• Payroll
• An extended period of indemnity
• Civil authority (ex: government closure)
• Contingent business interruption
• Contingent extra expense (this reimburses lost profits and expenses)
• Ingress/Egress

Steps After a Denial

After receiving a denial claim, make sure to list questions about the denial. Then, start to compile documents such as your policy and denial letter. The denial could be a simple error. The staff may have entered an incorrect code. However, if your COVID-19 business claim was denied, this isn’t the end of the road. It is just the beginning.

Free Insurance Case Review

If you or someone you love was negatively impacted by COVID-19, compensation may be available. Our attorneys are experienced with complex litigations. The right team in place can help fight these complicated and problematic claims. Our consultations are free. Contact us today.