Across the United States, businesses are filing lawsuits against their insurance companies for denial of business interruption claims despite widespread civil authority “shutdown” orders in the coronavirus outbreak.
Was Your Business Interruption Claim Denied?
In Pennsylvania, Governor Tom Wolf issued a disaster emergency proclamation on March 6, 2020. Then, on March 19, 2020, Governor Wolf prohibited the operation of non-life sustaining businesses. Similar shutdown orders were replicated by every state governor, and as a result, businesses across the country were forced to limit their operations or close their doors entirely.
Many insurance policies provide coverage for “business interruptions,” including “business income” losses and “extra expense” costs. Business interruption coverage may be provided as a separate extension on an insurance policy or as an inclusion in a commercial property policy. Despite having purchased and paid premiums for business interruption coverage, during our COVID-19 pandemic, many business owners are having their business interruption claim denied by their insurers.
Connection Between Coronavirus and Business Interruption Claim Denial
Unfortunately, insurance companies are universally denying payment for these business interruption claims. In many cases, they are declaring the coronavirus as an exclusion to coverage. Insurance companies are also citing a need for a “direct physical loss” as a prerequisite to coverage.
And, a “direct physical loss” is not necessarily limited to physical damage or destruction on the property. If a business is prevented from using its commercial property for its intended use, a “direct physical loss” may stem from the inability to conduct normal business operations.
Sadly, losses and expenses related to the shutdown of non-life sustaining businesses during the COVID-19 pandemic accrue very quickly and extend for many months, even after the conclusion of a shutdown order. For the foreseeable future, companies will be forced to limit their operational capacity, leading to immense financial harm.
If Your Business Interruption Claim Was Denied, Talk to Our Attorneys
If your business was closed or limited in its operation during the COVID-19 pandemic, and your business interruption insurance policy provides for business income loss or extra expense cost, you may be eligible to recover damages in an insurance coverage claim. PGMBM is a highly experienced law firm dedicated to representing its clients, and our primary goal is to obtain the full amount of coverage that you and your business deserve.
We understand the incredibly difficult circumstances of shutting down or limiting your business during the coronavirus outbreak, and the financial toll it takes on both you and your employees. We will thoroughly analyze and investigate your potential claim to determine whether you may be eligible to recover.