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Can You File a Business Interruption Insurance Claim Over the COVID-19 Pandemic?

business closure sign for covid-19We cannot overstate the damage the COVID-19 pandemic and resulting shutdown orders have done to the U.S. economy. Millions of people have lost their jobs and many businesses will not survive the economic slowdown.

One possible lifeline for these businesses is business interruption insurance. If you purchased a policy, you may be able to file a claim and obtain compensation to help keep your business alive.

However, insurers are being overwhelmed with these claims right now. That gives them one more reason to look for a way to deny your claim. That is why discussing the situation with one of the Minneapolis personal injury lawyers at TSR Injury Law is a good idea. The consultation is free and we do not get paid unless you do.

Do I Have a Valid Claim for Business Interruption Insurance Compensation?

This is one of many questions you can ask the experienced attorneys at our firm in a free consultation. Once we review your business interruption insurance policy, the reason your claim was denied, your losses, and other factors, we could get a better idea about whether you have a valid claim.

While each policy is different, they generally cover loss of income caused by business operations being suspended or reduced, often because of physical damage to the premises where the business operates. Policies usually list the perils that are covered.

While these policies are often limited to losses caused by physical damage, some policies allow you to pursue compensation for losses caused by an order from a civil authority, which might include the stay-at-home order issued in Minnesota in March.

Whether you have already filed a claim and it is being processed, it has already been denied or you are contemplating a claim, consider contacting TSR Injury Law to schedule a free legal consultation. Be careful talking to the insurance company, as they will try to use what you say against you.

Compensation That May Be Available?

There are a variety of monetary losses you may be able to include in a business interruption insurance claim, such as lost revenue and profits. Other losses your policy may cover include:

  • Rent
  • Compensation for your employees
  • Cost to reopen your business
  • Litigation costs
  • Tax bills
  • Utility bills (phone, electric, internet, etc.)

A common question about these policies is: how long will compensation be provided?

It depends on the policy. Sometimes compensation could be provided for several months, other times it may be provided for a much shorter time.

Why Business Interruption Insurance Claims May Be Denied

One of the most common reasons business interruption insurance claims are being denied is due to a lack of physical damage to the business. It may be possible to argue that the virus can physically damage a business because it makes the premises unsafe for customers.

Some business interruption insurance claims may be denied because there was no mandatory stay-at-home order. However, this may be an invalid reason in Minnesota because of the mandatory stay-at-home order issued in March.

Another possible reason for your claim being denied is that your policy has specific exclusions for things like pandemics and viruses. Many insurance companies added these types of exclusions after the Severe Acute Respiratory Syndrome (SARS) outbreak in 2003. The thing is, these exclusions may not hold up if you hire an attorney to challenge them.

Make sure not to miss the deadline for filing a claim. You may need to file a claim even as you are accruing losses.

Keep track of documentation of your losses and damages caused by the shutdown. Some of the documentation that may help our attorneys validate your claim includes:

  • Insurance policy, particularly the declarations page
  • Bank statements
  • Bills for rent and utilities
  • Profit and loss statements
  • Records of the revenue of your business before the shutdown
  • Invoices
  • Purchase orders

Is Your Business Struggling to Survive? Call to Discuss a Business Interruption Insurance Claim

There is no risk in contacting our firm for a free legal consultation. There is no obligation to file legal action if we find you have a valid claim, and we do not receive compensation for our services unless you receive compensation.

We have recovered millions in compensation from insurance companies in a variety of claims. We know how insurance companies operate and how to overturn a denied claim.

Our lawyers are ready to manage your claim while social distancing, thanks to eSign and other technology. We are also ready to manage every aspect of the legal process without the need for a face-to-face meeting. Helping our community stay safe is of paramount importance.

Have questions? Call (612) TSR-TIME to learn more about how we may be able to assist you.

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