Companies large and small, serving both the business-to-business and business-to-consumer markets, are already suffering financially due to the coronavirus pandemic. A question that may determine their very future is whether they have a viable claim under their business insurance policy for business interruption and other financial losses.
We want to offer our help evaluating policy language and developing a strategy to make a successful claim.
For example, some businesses will learn their business insurance policy specifically excludes communicable disease. Such exclusions became commonplace after SARS in 2003 when insurers realized the level of exposure they had, particularly in the hospitality industry. Also, business insurance policies typically require physical damage to property in order to trigger business interruption coverage, and the question of whether the coronavirus causes such property damage, and what law applies in making this determination, will be crucial. Also, some business policies afford coverage when losses have been incurred due to an order by a civil authority. Thus, how a claim is presented, including the nature of supporting evidence and the manner in which it is characterized, can well affect the outcome of the claim. In the meantime, it is important that coronavirus business impacts be properly documented.
If you or your client would like assistance with a potential coronavirus-related claim, give us a call.