COVID-19 Business Interruption Claim Denials
California Insurance Bad Faith Attorneys Fighting for Business Owners
As the COVID-19 pandemic continues to spread across the United States, many businesses are facing temporary and permanent closures as the result of “stay at home” and “shelter in place” mandates. On March 19, 2020, California Governor Gavin Newsom ordered that businesses marked as “non-essential” close their doors for business indefinitely. While it was a necessary measure to protect public health, many California businesses are now suffering serious losses and painful economic burdens.
In these difficult times, non-essential business owners who have purchased business interruption insurance should be protected by the companies that issue these policies. Unfortunately, many owners have reported that insurance providers are issuing blanket denials for COVID-19 loss of business income claims, blocking them from vital funds and resources. At Greene Broillet & Wheeler, LLP, our insurance bad faith attorneys are committed to holding insurance providers accountable for unfair denials – and helping your business survive during this extraordinary crisis.
To learn how our team can help with your business interruption claim denial, contact Greene Broillet & Wheeler, LLP at (866) 634-4525 or contact us online. We serve clients in Los Angeles, California, and nationwide.
Does Business Interruption or Loss of Business Income Insurance Cover the Coronavirus?
Business interruption or loss of business income insurance is included in many property and casualty loss policies, and it is designed to protect businesses from the financial fallout of tragic, unforeseeable events, from physical losses such as theft to natural disasters. When you file such a claim, you may be eligible to receive coverage for loan payments, profits, employee wages, rent, and other costs associated with the interruption. Depending on your policy, this coverage may apply for up to 12 months.
During the SARS outbreak in 2003 – which also involved a fast-spreading coronavirus – many insurance providers intentionally re-wrote their business interruption insurance policies to exclude losses from viruses, bacteria, and other microorganisms. However, not every policy has language that excludes virus-related business losses, and upon further inspection of those policies containing a virus exclusion, insurers may even have a duty to provide coverage in the event of a viral pandemic. For example, if your policy includes “civil authority” coverage, you may be protected in the event of a government-mandated shutdown, regardless of the reason.
Should I Seek Legal Help for a COVID-19 Business Insurance Claim Denial?
Right now, many insurance providers are engaging in bad faith by denying coverage to business owners who should be protected under interruption policies. In fact, so many insurers have been attempting to avoid their responsibility that the California Department of Insurance has issued a notice requiring insurers to properly investigate business interruption claims within 40 days. If your insurer has already denied your business insurance claim, our California attorneys at Greene Broillet & Wheeler, LLP, can represent you in all matters related to your denial and your claim.
If all of the following apply to you, you may be eligible for coverage under your business interruption insurance policy:
- You are a California business owner affected by the COVID-19 pandemic.
- You can show significant financial losses because of the pandemic or the government-ordered shutdown of non-essential businesses.
- Your business insurance policy includes business interruption or loss of business income insurance.
Our legal team understands that this is an unprecedented time for our country, and with compassionate counsel and vigorous advocacy, our insurance bad faith attorneys are fighting for business owners and their right to insurance coverage. It can be overwhelming to go up against the resources of large insurance companies as a small business owner, which is why we will stand by your side and help you navigate the appeals process after a COVID-19 business interruption claim denial. By reviewing your policy in-depth and determining your legal options, we’ll help you understand your options and find a clear path forward.
Contact us at (866) 634-4525 today to get started with a free consultation and policy review. We also work on contingency fees, which means you will not have to pay unless we recover for your claim denial.
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