As a small business owner, you must have insurance to cover the expenses of the unknown. Be it a natural disaster, robbery, or even an injured employee, you try to use protective measures to keep your business afloat and your family fed. But when your insurance company denies your claims after unforeseen worldly events cause you to shut your doors for months, you may be wondering what options you have. Mazzoni Karam Petorak & Valvano is here for Pennsylvania’s small businesses that need someone to handle their business interruption claims.
What is business interruption insurance?
Business interruption insurance is often a part of a small business owner’s insurance policy. While each policy is different, typically business interruption policies cover economic losses that resulted from unforeseen circumstances.
The conditions typically required for a business loss to be proven are that physical damage to insured property, caused by peril, resulted in business loss.
Right now, it is estimated that small businesses have lost between $255 billion and $431 billion of income monthly as a result of the global health events associated with COVID-19. However, some small businesses in Pennsylvania are still being met with denials of insurance coverage.
What does business interruption insurance cover?
When business interruption insurance is applicable, the claim may be used to cover the following:
- Lost income
- Payroll related expenses
- Normal operating expenses
However, policies are different depending on the business, so reviewing with an attorney or insurance agent is important to know what you may be entitled to.
At the end of May 2020, a new bill was proposed to legislators providing new information on business interruption coverage claims, while also allowing insurance companies to deny coverage. Though no decisions have been made, it remains unclear if any proposed legislation will be put into effect.
But not all is lost. In reviewing the emergency motions, the U.S. Supreme Court found the Pennsylvania governor acted within his power to declare a natural disaster as a result of the current health climate. The court called the situation very similar to a natural disaster as it involves “substantial damage to property, hardship, suffering or possible loss of life.”
While this has opened up the possibility that business interruption claims being filed right now by small businesses across the Keystone State may be approved because of the natural disaster declaration, the reality is that it can be highly difficult.
State resources have been allocated for some small businesses throughout the Keystone State. That information is available here. In addition, you can visit the Rapid Response Assistance to review material created by the Pennsylvania Department of Labor and Industry and DCED about business interruption claims.
What can Pennsylvania small business owners do?
Time is of the essence when it comes to these business interruption claims. If your insurance provider has denied your claim, you need legal counsel. At Mazzoni Karam Petorak & Valvano, we will review the industry standards of your policy to see if we can appeal your claim.
For some businesses, such as those in the restaurant and hospitality industry, insurance clauses exist to cover losses as a result of illness. In addition, we may be able to fight for your compensation for canceled events.
That’s why you need a strong legal team behind you to review all of the fine print of your insurance policy. In addition, if your insurance provider has not reviewed your claim, it may be possible to open a case.
Mazzoni Karam Petorak & Valvano: PA Small Business Insurance Policy Review
If you have been denied insurance coverage as a result of current events, know that you have rights. At Mazzoni Karam Petorak & Valvano, we will review Pennsylvania’s small business owners’ claims and help you seek the compensation you deserve.
You are fighting to keep your business afloat. 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.
For additional information about small business insurance claims, visit our blog.