Coronavirus Business Interruption Insurance Coverage: Who’s Affected?

Businesses interruption insurance denied after coronavirus

Are you a business owner or event organizer who has been forced to close due to coronavirus mandates, but thought your business interruption coronavirus insurance claim would cover the closures?

Has your business interruption insurance coverage claim been denied?

The coronavirus has hit people hard all over the world, not least of which are the small business owners, many of whom have now had to close down their businesses as a result of the ongoing pandemic. Many business owners have turned to filing business interruption insurance claims to help cover business income and operating expenses.

Unfortunately, business owners are now being denied their coverage. Insurance companies are reportedly telling businesses who have filed business continuity claims that the loss of business from coronavirus closures is not covered by their policies.

If you are a business owner or event organizer who has been denied business interruption insurance coverage after closing due to the coronavirus pandemic, you may be able to join this coronavirus business interruption insurance class action lawsuit investigation.

The qualified lawyers working with Top Class Actions are looking into filing class action lawsuits that resulted from claims of denied coronavirus business interruption insurance to help you receive the compensation you deserve.

See if you qualify by filling out the free form at the bottom of this page.

What is Business Interruption Insurance?

Business interruption insurance, sometimes called business continuity insurance, is a type of insurance coverage that protects business owners from income loss due to a disaster, such as a fire or natural disaster.

Business interruption insurance is not sold as a separate policy, but instead is usually added to a property/casualty policy, or may be included as an add-on in a comprehensive package policy, according to Investopedia.

Business interruption insurance coverage is meant to cover businesses until whatever the policy has defined as the end of the business interruption period. In most cases, this is defined as the date when the property has been repaired, if repairs are needed, and can function as it did prior to the disaster that interrupted business in the first place.

With business continuity coverage, insurance companies cover the business’s income lost, as well as its operating expenses, payroll, taxes, and loan payments, up to the limit stated in the insurance policy.

Business Interruption Caused by Coronavirus

Businesses all across the world have been impacted by coronavirus, and many have had to cut down their hours, lay off their employees, and even shutter their doors entirely as states around the country have mandated that all but “essential businesses” remain open.

Indeed, according to a new Goldman Sachs survey, approximately 51% of small business owners in the United States foresee only being able to keep operating for up to three months at most if conditions under the pandemic continue like this, but a staggering 96% say that that they are already feeling coronavirus effects.

Most of these business owners cite fewer sales, while many others say that telecommuting isn’t an option. Only 13% of small business owners are confident going forward that they will be able to meet their business’s needs. The Goldman Sachs survey included more than 1,500 small business owners across the country.

Read more: Kid Boutique Files Travelers Business Interruption Insurance Lawsuit 

Why Have the Insurance Claims Been Denied?

Because of the effects of coronavirus causing an interruption to their business, many owners may assume that their business interruption insurance policies would kick in or at least be an option.

However, more and more business owners who have filed business interruption claims due to the coronavirus pandemic are having their claims denied. Insurers claim that these policies cover physical loss or physical damage to property that causes a business to close, with disasters like hurricanes rather than a pandemic. The language in the policy may be tied directly to physical damage and destruction of property.

Without direct physical loss to the property that results in the closure, some insurance companies are denying any kind of coverage for these business continuity insurance claims.

Read more: Should You Be Provided Business Interruption Insurance Coverage During COVID-19?

Coronavirus Insurance Coverage Lawsuits

Some business owners have begun to fight back against their insurers, in some cases pursuing coronavirus litigation, by filing coronavirus insurance coverage lawsuits.

For instance, the New Orleans–based Oceana Grill, filed a coronavirus lawsuit, alleging that its insurer, Lloyd’s of London, must cover coronavirus damages because of their “all risk” coverage. The terms of the policy, the restaurant claims, includes the extension of coverage to the business for losses sustained due to a civil authority­­–ordered closure of business.

Read more: Treasure Island Las Vegas Suing for COVID-19 Business Coverage

What Coronavirus Effects Have the Lawsuits Claimed?

The Oceana Grill restaurant argues that physical damage to the business is actually among coronavirus effects.

“The scientific community, and those personally affected by the virus, recognize the coronavirus as a cause of real physical loss and damage,” Oceana Grill claimed.

For instance, the restaurant noted, several countries, such as France, Italy, and Spain, have begun cleaning and fumigating public areas before allowing them to reopen. The lawsuit also notes that since their policy does not actively exclude a viral pandemic, the coverage claim cannot legally be denied.

“I can’t imagine how defense counsel are going to walk into court and say that coronavirus does not cause damage to property, or contaminate property,” plaintiff’s council recently told the Insurance Journal.

Coronavirus effects are “physically impacting public and private property, and physical spaces in cities across the world,” the Coronavirus business interruption lawsuit argues. “Any effort by Lloyd’s to deny the reality that the virus causes physical damage and loss would constitute a false and potential fraudulent misrepresentation that could endanger policyholders and the public.”

Without business interruption coverage to push companies through this pandemic, some restaurants and other businesses are facing a grim reality: that they may not be able to open their doors again after the pandemic is over.

With no insurance coverage to help with the loss of revenue, with businesses still needing to pay rent, and with no concrete idea of when this situation will be over, some fear that we’re about to see a growing number of small businesses and restaurants closing permanently, the Denver Post said in a recent report.

Read more: Calif. Taco Shops Unfairly Denied Coronavirus Business Losses

Join a Free COVID-19 Class Action Lawsuit for Business Interruption Insurance Investigation

If you are a business owner or event organizer who has had to close your business due to the ongoing coronavirus pandemic but has been denied business interruption insurance coverage by your insurer, you may qualify to join this free coronavirus insurance coverage class action lawsuit investigation.

Fill out the form on this page for a free case evaluation to see if you qualify for a class action lawsuit.

Get Help – It’s Free

Join a Free Coronavirus Business Interruption Insurance Lawsuit Investigation

If you qualify, an attorney will contact you to discuss the details of your potential case at no charge to you.

PLEASE NOTE: If you want to participate in this investigation, it is imperative that you reply to the law firm if they call or email you. Failing to do so may result in you not getting signed up as a client or getting you dropped as a client.

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After you fill out the form, the attorneys who work with Top Class Actions will contact you if you qualify to let you know if an individual lawsuit or class action lawsuit is best for you.


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