The coronavirus pandemic has resulted in positive COVID-19 cases in approximately 216 countries and territories. On the global scale, there have been more than 10 million confirmed cases of the virus (as of late June 2020). The pandemic has also resulted in over 500,000 confirmed coronavirus deaths. The pandemic was declared in early March 2020; within a few days, the United States declared a national emergency.
Soon after, governments started issuing orders, in which all non-essential businesses where ordered to close. Only essential business (such as grocery stores, banks, take-out/delivery restaurants, and pharmacies, among others) were allowed to remain open. This order was devastating for businesses that were deemed non-essential.
If you are a small business owner, your business might have been devastated by the government-ordered closures. If you have business interruption insurance, however, you might have grounds to pursue a claim. If you would like to learn more about your right to pursue a business interruption insurance claim, do not hesitate to seek legal assistance with the experts at our firm immediately. Our lawyers will help you understand your right to sue as well as the potential value of your business interruption claim.
What is Business Interruption Insurance?
Business interruption insurance is a type of insurance coverage that can help business owners when their business is affected by unforeseen circumstances. Typically, business interruption insurance applies when businesses suffer financial losses associated with disasters. Business owners that have business interruption insurance could recover compensation for the losses directly caused by the disastrous situation. Does your business interruption insurance coverage apply to the losses associated with the pandemic? Unfortunately, the language in business interruption insurance policies can be unclear; while some policies do not exclude coverage in times of pandemic, they do not explicitly include losses due to pandemics. Because of this, business interruption insurance claims can often be complicated.
What Does Business Interruption Insurance Cover?
Business interruption insurance can potentially cover a number of losses. Some of the losses that business interruption insurance could cover include some of the following:
- Costs associated with temporary locations (relocating the business to keep operating)
- Lost profits as a direct result of the disaster
- Fixed costs associated with the normal operation of the business (to keep it operating during the time of disaster)
- Extra expenses required to continue business operations (must be reasonable expenses)
- Commission and training costs associated with training employees to use any equipment replaced by the insurance company
- Civil Authority Ingress/Egress associated with the profits lost as a direct result of government-ordered closures of businesses
Although a business interruption claim could cover the different losses listed above, it is important for affected parties to understand that coverage will depend on the specific details surrounding the claim. If you would like to learn about what your business interruption insurance claim could cover (if your claim reaches a successful outcome), do not hesitate to seek legal assistance with the experts at our firm immediately.
What is My Business Interruption Insurance Claim Worth?
How much could you recover after pursuing your business interruption claim? The specific type and amount of compensation that you could be eligible to receive will depend on the details surrounding the claim. To get a better understanding of the potential value of your claim, you should ask yourself a few questions.
Consider the questions listed below:
- How much did it cost to relocate your business?
- How much profits did your business lose?
- How much profits did your business lose as a direct result of closures ordered by the government?
- What were the costs associated with keeping your business operating?
- What extra expenses were incurred to continue operating the business?
- Were there any costs associated with training employees to use new work-equipment?
How much can your business interruption insurance claim be worth? The answer to this question depends on both actual losses as well as any expenses incurred due to the unforeseen situation. If the combination of financial losses as well as incurred expenses amounted to $150,000, for example, your claim could be worth $150,000. If the total amount of losses/expenses was $300,000, your claim could be worth $300,000. However, the possible value of your claim will also depend on the total coverage provided by your policy. That is, the value of your claim can be affected by your policy limit. For more information about the possible value of your business interruption insurance claim, do not hesitate to contact our firm today.
What Should I Do?
Are you interested in pursuing a business interruption claim? If so, there are a number of things that you should do to prepare to pursue your claim. Consider the following recommendations:
- Gather all records relevant to the losses to your business
- Gather all records relevant to any new expenses to your business
- Gather all information relevant to your business interruption insurance policy
- Thoroughly review your insurance policy
- Gather any additional evidence that could support your claim (i.e. official notices ordering your business to close, for example)
- Seek legal assistance with an experienced business interruption insurance expert immediately
Even if your claim is valid and should be covered based on your policy, it is possible that your insurance company refuses to acknowledge the validity of your claim and pay. If your insurance company refuses to take your business interruption claim seriously, you should consider pursuing a bad faith claim against the insurance company.
To prepare to file a bad faith insurance claim, you should consider these additional recommendations:
- Gather all records of communication between you and your insurance company
- Limit communication with your insurance company
- Keep communication limited to written communication (email, letters, etc.)
If you would like to learn more about what you should do to prepare to pursue your business interruption claim, do not hesitate to seek legal assistance with the experts at our firm as soon as possible. Our lawyers are ready to provide you with all the information that you need and guide you every step of the way.
Contact Downtown L.A. Law Group Today
For more information about the potential value of your business interruption claim, do not hesitate to seek legal assistance with the experts at our law firm as soon as possible. At Downtown L.A. Law Group, our experienced business interruption insurance attorneys are ready to evaluate your claim and provide you with all the guidance that you need to pursue your claim and recover compensation for all your losses. If you would like to learn more about your right to pursue your business interruption claim, do not hesitate to seek legal assistance with the experts at our firm immediately. Our lawyers are ready to provide you with the guidance that you need to get your insurance company to award you the compensation that you are owed.
At Downtown L.A. Law Group, we understand that it could be difficult for affected individuals to access legal services. To remain accessible to affected claimants, our firm offers free legal services. Our free legal services include free consultations and free second opinions. During these free consultations and free second opinions, our experienced attorneys will be available to answer all your questions as well as to address all your concerns. Our business interruption insurance lawyer will provide you with all the necessary information to pursue your business interruption claim. Would you like to benefit from our free legal services? If so, do not hesitate to contact our firm today and request to speak with our experts.
At our firm, we are dedicated to remaining accessible to individuals interested in taking legal action. Our firm offers a Zero-Fee guarantee that ensures that our clients will not be responsible for paying upfront legal expenses. Our firm is also based on a contingency structure, meaning that our clients will not be required to pay anything until after reaching a successful claim outcome. What if your claim is unsuccessful? If you do not win, you will not have to pay anything. Even when you win and recover compensation, all legal fees will come out of your recovery – meaning that there will never be any out-of-pocket costs.
Are you ready to discuss your claim with the experts at our law firm? If so, do not hesitate to contact us immediately. Our lawyers are ready to guide you every step of the way.