Disasters happen. House fires, car accidents, floods, and more. Insurance exists to cover individuals and businesses when these issues happen. Yet most of us have discovered that carriers may not always be there for us.
Nothing can be more disastrous than the COVID-19 pandemic. And companies are bringing lawsuits against these carriers who are telling their clients that their Business Interruption policy doesn’t cover all the issues that have adversely impacted business owners during this time.
The first question to ask is whether the business has suffered a “loss” that triggers the policy. Of course, the business has suffered a loss – an inability to sell its products or services, the resulting loss of income, perhaps an inability to receive shipments of necessary components or ingredients needed for manufacture or assemblage, possible claims for breach of contract — and so forth.
Many business owners are getting a straightforward “no coverage” response from the insurance companies or brokers with whom they speak. However, that may not be the correct answer, for there are several types of business interruption insurance and different policies have different wordings for their exclusions. There are no “standard forms” for such policies. As we’ve said before on this blog, it's best to get your policy reviewed by an experienced law firm.
Business Interruption policies exist to help small businesses through these times. It can help with income, expenses, and loan payments. Make sure that you’re doing your part to hold carriers responsible.