As a result of the COVID-19 pandemic, cities, counties, and states across the country have ordered the closure of many businesses, from single owner stores to large corporations. These closures are having enormous consequences for millions of Americans.
Many standard business insurance policies provide coverage for earnings and revenue lost because of government shutdowns, commonly referred to as “Business Interruption” or “Civil Authority” insurance coverage.
If your business has such a business interruption insurance policy and your insurance company has denied, delayed, or underpaid your claim, or is attempting to do so, please give us a call. Even if you just want a second opinion to make sure you are getting the best possible result, we will be happy to do so, free of charge.
We Are Here For You
Norris Law Firm, PLLC is a well-known and respected consumer law firm in North Carolina. We will hold insurance companies accountable and assist policyholders in making sure that they are treated fairly.
Please contact us today to find out how our business insurance claim dispute attorney may be able to help you.
Let Us Take A Second Look
During this trying time, we will provide a free, and “risk-free” review of your business insurance policy if you have been closed due to the COVID-19 pandemic. Don’t let misinformation or confusion around these claims deter you. Act now, and put your mind at ease so you can go back to doing what you do best – running your business.
Billions of dollars have been, and may still be, lost because of COVID-19 shutdowns. Although the shutdowns and CDC guidelines are there for the preservation of public health and protection of us all, these closures have a devastating impact on businesses.
If your business has been affected by these public health shutdowns, you may have tried, or want to try to make a claim on your insurance policy for relief from the financial hardships of the last year. Your commercial insurance policy should contain a business interruption coverage clause that insures you for such losses. Business interruption insurance coverage is a complicated area of insurance law. It’s an important first step to make sure that you understand the wording of your particular insurance policy.
Even if you have business interruption coverage, business owners can still face a tough road getting the compensation you deserve after suffering financial losses from a government shutdown or other COVID-19 related closure or limitation on your business. First and foremost, the policy wording that limits this coverage to losses caused by “direct physical loss of or damage to property.” Your insurance carrier typically will use this wording to assert that business closures related to the coronavirus did not suffer “direct physical loss of or damage to property.”
Business Loss Clause Challenges
Some courts have said that business losses caused by a “threatened loss”, such as a flood or fire, are not “physical losses.” Because of this, you may not have busines interruption coverage for COVID-19 unless you can show that your business was forced to close as a result of an actual COVID-19 contamination. In North Carolina, however, you may very well have a claim for “direct physical losses” suffered as a result of a government shutdown. Courts in a number of jurisdictions, including North Carolina, have determined that incidents such as a coronavirus shutdown that renders property uninhabitable or otherwise unfit for its intended use constitutes a “direct physical loss” that would allow you to recover under your business interruption coverage policy.
Whether your business has suffered a “physical loss” under your policy requires a review of the facts of your potential case, and the particular insurance policy at issue. We will be happy to perform such a review at no cost to you.
Civil Authority Closure Coverage
Your business insurance policy may also have “civil authority” coverage, which is a special coverage type for lost revenue and income if your business is closed by order of a government entity. Many court decisions have said that “civil authority coverage” will allow you to recover business losses if your business is closed due to the coronavirus pandemic.
North Carolina businesses have suffered, and may well continue to suffer, significant losses caused by the COVID-19 pandemic. Unfortunately, insurance companies sometimes try to avoid providing the coverage they promised when you need it the most. Businesses such as yours expect protection when it is needed the most. You deserve an advocate that has the skill and resources to fight for your rights, and to make sure that your insurance company keeps its promise to you to protect you when the going gets tough.
If your business has sustained losses caused by the coronavirus pandemic, and you have business loss coverage, please contact us today to see how we can help you.