COVID-19 Business Interruption Insurance Claims
The coronavirus pandemic has brought with it a disastrous economic downturn as a wide range of businesses have been shuttered and their employees and customers have been ordered to stay at home. Although states are gradually starting to reopen, many companies are still reeling from the crisis.
Business interruption insurance is one potential area of refuge. Although many policies include exemptions for pandemics, courts and lawmakers are still sorting out a wide range of coverage issues. That is why it is important for any business considering filing a claim, or already grappling with an insurer, to have a seasoned attorney in its corner.
At Tesser | Grossman LLP our business interruption insurance lawyers provide vital legal assistance to companies impacted by COVID-19. We understand the pain and stress the economic downturn is causing business owners and can help them address the myriad legal issues posed by the pandemic.
Coverage, Exemptions Vary
Business interruption insurance policies are generally designed to cover companies in certain situations in which unforeseen events cause operations to slow, stall or completely halt. That often includes filling the gap for any lost income as a result of the interruption, as well as any related expenses.
As in other types of insurance policies, the types of situations covered and the extent of the coverage vary widely, based on the specific terms of the policy. It is important to understand those terms before buying a policy and prior to submitting a claim to prevent a claim denial.
First, many business interruption policies require physical damage to occur to the business or for its space to become “uninhabitable” in order for coverage to kick in. Although courts often side in favor of the insured, the pandemic has already raised questions about whether fear of spreading the virus or a local stay-at-home order is sufficient to establish that a space is uninhabitable.
In addition, many interruption insurance policies include specific exemptions for pandemic and infectious diseases. Lawmakers and courts around the country have been debating the reach of these exemptions, however, and there has been some push to limit them through federal legislation.
How Our Business Interruption Insurance Lawyers Can Help
If you are locked in a dispute with your insurer or grappling with questions about coverage, the business interruption insurance lawyers at Tesser | Grossman can help.
We have significant experience handling a wide range of insurance and other legal issues for businesses in California and across the country. Our business attorneys are closely monitoring developments in courts and statehouses regarding business interruption insurance to help clients understand the situation and navigate the claims process. Our firm is pleased to be able to offer a number of fee arrangements.
We are conveniently located in Los Angeles, where our lawyers serve clients throughout the state and around the globe. Contact us online or call 310-207-4558 to schedule a free, confidential consultation with an attorney.