Business interruption is a temporary suspension in operations on a partial or full scale due to the result of a catastrophic event. Business interruption insurance is designed to protect businesses from the financial impact of these unforeseeable catastrophic events and from physical losses, such as those caused by natural disasters.
Business interruption insurance is not sold as a separate policy. Rather, it is generally added to a property policy or included in a comprehensive package policy as an add-on.
What business interruption insurance covers depends on the terms of the agreement with the insurance company, but common categories include;
- operating expenses
- loss of revenue during the closure
- temporary location expenses
- training costs
In nearly all cases, business interruption insurance requires that physical damage, loss, or destruction to tangible property be triggered for it to be covered. Insurance companies may argue that COVID-19 doesn’t meet the coverage trigger threshold because the virus doesn’t cause “physical damage” to a property in the same way natural catastrophes like fires, tornadoes, and hurricanes do.
Although many policies have exclusions that could limit coverage of losses related to COVID-19, there could be language in your policy that provides coverage for losses due to the pandemic. While insurance providers may try to argue there is only one way to interpret business interruption policies, the fact is that many of the rules are ambiguous. This could leave room for negotiation and additional legal options for you.
There have been numerous instances where policyholders filed actions against their insurers and recovered compensation that they were initially denied.
The experienced Oklahoma City business interruption lawyers at Ryan Bisher Ryan & Simons are offering free and confidential reviews of policies for businesses that have been impacted by the coronavirus pandemic. If you are a business owner in the Oklahoma City area, it’s critical that you act fast, as you may only have 30 to 60 days to file a claim for coronavirus-related business closure. Call us today so we can get started helping you get through this difficult and unprecedented time.
How Could a Business Interruption Claim Be Denied?
Common reasons for a business interruption claim denial include:
- Failure to report losses by the deadline – Many business interruption policies require the business promptly report a claim, even if the total losses cannot yet be measured. If the COVID-19 shutdown is ongoing and you are still calculating the lost revenue, don’t delay in filing your claim for business interruption coverage. Our experienced attorneys can help you file a claim to preserve your rights under the insurance policy.
- Exclusions for viruses and pandemics – Your claim may get denied because your policy excludes coverage for viruses and pandemics.
- Lack of “physical damages” – Your claim may get denied because of a lack of “physical damage” to your business’s premises.
If your insurance provider denies your claim, it is very important that you consult with a skilled and experienced bad faith insurance lawyer as soon as possible. The attorneys at Ryan Bisher Ryan & Simons can evaluate your case, carefully review your policy, and explain all your legal options. We know how to interpret these complex policies and negotiate with insurers.
We are also well aware of the tricks that insurers try to employ to undermine or deny your claim. Working with an experienced attorney provides you the best chance for getting the maximum compensation you deserve.
Industries Affected by Business Interruption Claim Denials
A wide variety of businesses and industries have been affected by business interruption claim denials during the COVID-19 pandemic, including for example:
- Retail stores
- Concert venues
- Movie theaters
- Oil and gas operations
Insurance Litigation as a Legal Recourse for a Claim Denial
Anytime an insurer denies a claim, they have to give a reason for their decision. If your insurer denies your valid claim and refuses to provide you with a reason, you may have a claim of bad faith.
No matter the type of coverage you have, your insurer is supposed to work in your best interests. If your insurer is not providing you with the benefits that you paid for in advance, the law allows legal recourse for not only your policy benefits but also full compensation for any damages.
Insurance litigation will allow you to seek the benefits you need and deserve and compensation for the damages you have suffered because of the wrongly denied claim.
Contact a Business Interruption Insurance Denial Attorney
A business interruption attorney knows how to make a claim effectively.
Business interruption claim lawyers are helping clients with a wide array of tasks during this challenging time, including:
- Filing your business interruption claim due to the mandatory closure from the COVID-19 pandemic.
- Calculating your business interruption claim, including loss of revenue and increased cost of operation.
- Identifying the types of losses that qualify and determine the value of your case.
- Gathering the evidence that you need to win your case.
- Negotiating full and fair compensation from your insurer.
- Settling your claim or seeking a verdict against your insurance carrier for the amount of compensation you are owed.
For more than three decades, the committed business interruption lawyers at Ryan Bisher Ryan & Simons have been helping business owners throughout OKC get the results they need.
Call now to schedule a free and confidential consultation.