June 9, 2020
Can You File a Business Interruption Claim?
When the coronavirus pandemic hit, you never imagined you would have to close the doors of your small business for months on end. Now that we’re beginning to reopen and return to a new normal, you may be wondering if your insurance company will allow you to file a claim for those lost earnings. The answer is maybe.
How to File a Business Interruption Claim
Because of the complexities surrounding business interruption claims related to COVID-19 losses, it’s imperative that you practice as much due diligence as possible because these claims are time-consuming. To file a business interruption claim, you’ll need to:
- Notify your insurer right away. If you need an additional copy of your policy, request one.
- Make sure you know what is and is not included in your policy. It will save you time when you begin to calculate losses.
- Be prepared with all of your records. Be able to show pre and post COVID-19 numbers and have any invoices prepared that you may need.
Figuring out what your business losses are can be very difficult. In many cases, you are best to work with an attorney who can review your policy and ensure any fine print will not be missed.
Insurance Providers In Disagreement Over COVID-19 Protections
Unfortunately, even if you follow all of the steps and have everything prepared to present a claim, insurance companies are denying payouts because of force majeure. Force majeure is the policy stipulation where unexpected, external circumstances prevent one party from fulfilling a contract.
In this case, it would be that the insurance company cannot meet its obligations to policyholders. While this is met with some raised eyebrows as insurance is meant to protect from the unexpected, not to be ill-prepared for it, many attorneys are not so sure this holds up.
In addition, many business interruption policies are specific to physical damage. Because the coronavirus pandemic did not lead to physical damage to businesses, many insurance providers are saying their hands are tied.
But we know that isn’t true. You work hard for your small business. These loopholes must be counteracted with a strong legal defense.
Mazzoni Karam Petorak & Valvano: PA Small Business Insurance Policy Review
If you have been denied insurance coverage as a result of COVID-19 business losses, let the attorneys of Mazzoni Karam Petorak & Valvano review your policy.
You are fighting for your livelihood. Let us fight for your legal rights. Contact the business interruption claim attorneys of Mazzoni Karam Petorak & Valvano today. We serve and protect small businesses across Northeast Pennsylvania.