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Business Interruption Insurance Claims

The coronavirus pandemic has had a devastating effect on our economy. Businesses, especially small businesses, have suffered tremendous losses. A key question now is will all or a portion of these losses be covered by insurance?

Has your Business Interruption Insurance Claim Been Denied?

Millions of business owners are finding themselves in financial disaster and ruin due to the coronavirus pandemic. Those with business interruption policies, are counting on this insurance to replace lost income, pay bills and cover payroll.

The question is, will your insurance provider honor it? Most are currently denying claims related to the coronavirus so you may want to consult with an attorney experienced in handling insurance disputes, who can advise on a wide variety of related issues and who can help you pull together a detailed business interruption claim.

Schedule a free, no-obligation consultation with our attorneys.


Business interruption insurance

Business interruption insurance, also referred to as business income insurance, replaces lost income and amounts paid for bills and payroll in the event of a disaster that forces the business to close or reduce operations.

In general, policies cover (but are not necessarily limited to):

  • Profits lost which normally would have been earned
  • Fixed costs, such as rent and utility costs and other operating expenses
  • Expenses of operating from a temporary location (i.e., if you have to move the business to a temporary location)
coronavirus impact on business

What impact has the coronavirus had on your business?

Unfortunately, disagreement exists regarding whether business interruption insurance policies should cover losses caused by a pandemic.

On April 6, the American Property Casualty Insurance Association (APCIA), the primary national trade association for home, auto, and business insurers, issued a statement. It says, “Many commercial insurance policies, including those that have business interruption coverage, do not provide coverage for communicable diseases or viruses such as COVID-19. Pandemic outbreaks are uninsured because they are uninsurable.” 

To complicate matters further, lawmakers in several states are proposing bills to force insurance companies to pay for COVID-19-related losses under business interruption insurance policies. Currently that includes New Jersey, Massachusetts, Ohio, New York, Pennsylvania, South Carolina, Louisiana; and many are calling for federal legislation.

Another potential means of recovery could be the proposed Pandemic Risk Insurance Act of 2020 (PRIA), which would create “a Federal program that provides for a transparent system of shared public and private compensation for business interruption losses resulting from a pandemic or outbreak of communicable disease.” 

Additional Resources:

Questions? Our team is here to answer them for you. Contact us at (877) 284-6600.


Experience matters

Navigating through your insurance policies from filing claims to filing lawsuits for a wrongful denial of your claim as well as new legislation can be overwhelming and frustrating. The Nash & Franciskato legal team will assist you throughout this process and will advocate aggressively on your behalf. For you that means experienced attorneys who are creative, resourceful, and tenacious in protecting your legal rights.

Plus, our legal team gives you:

  • Over 80 years of combined experience
  • Trusted legal advisor committed to your needs
  • Free, no-obligation review of your case
  • Super Lawyers for over 10 years
  • The AV Preeminence Rating for Ethical Standards & Legal Ability
  • Compassionate advocacy for you and your family

RECEIVE A FREE EVALUATION FROM EXPERIENCED ATTORNEYS

If you own a business and were told by an insurance company that your business interruption insurance policy does not cover coronavirus-related claims, contact us for a free, no-obligation review of your case.

Contact us for a free review of your case.