COVID-19 AND BUSINESS INTERRUPTION COVERAGE UPDATE.

Over the past weeks, several lawsuits have been filed in courts across the country, by both insurance carriers and insureds, relating to coverage disputes for lost business income resulting from government-enforced COVID-19 business closures. Business owners allege that they were forced to close or limit operations by government authorities as part of state and federal efforts to prevent the spread of COVID-19, resulting in significant lost business income. These insureds include businesses such as restaurants, bars, medical offices, movie theaters, production companies and others. Insurers generally respond by arguing that business interruption loss are only paid when there is “direct physical damage” that leads to lost business income, and/or that the insurance policies include exclusions related to virus, bacteria or communicable diseases. One insurance carrier, Travelers Insurance, has even filed suit against a Los Angeles law firm who sued the insurer earlier this month. There, the carrier argued that virus-related losses are specifically excluded from business interruption policies issued to the firm; and, even without the exclusion, coverage would still be denied because the virus did not cause physical damage.

As a business owner, what do you need to know? First, you’ll need to know and understand the key terms and concepts related to your insurance policy. Then, you’ll need to know and understand how those key terms and concepts frame the issues of an insurance coverage dispute. Then, you’ll need to know how courts generally resolve insurance coverage disputes. Finally, if you want to file a claim for business interruption or want to revisit a claim that your insurance carrier previously denied, you’ll want to speak to an attorney.

We have done the research. We know the key issues. We know what to look for in your insurance policy. If you are a business owner that has lost business as a result of COVID-19 government shutdowns, contact us today. We will review your insurance policy at no charge to look for the relevant coverages and exclusions. We will be able to advise if there is a case to be made for insurance coverage for your lost business income. Don’t wait. The fight between insurance carriers and businesses is on. Don’t miss out.

Recent Posts

FIFA’s New Regulations in Dealing with Minors

On April 1, 2015, FIFA's Regulations on Working with Intermediaries became effective. The 2015 Regulations essentially de-regulated the football agent industry. For instance, the Regulations no longer required agents to be licensed, pass an exam or provide insurance....

How Much do Soccer Players Make?

I often get asked the question, "How much do soccer players make in MLS?" Some people are just curious because they have no idea what type of salaries soccer players make, especially in the USA. Some people want to compare Major League Soccer salaries to European...

Play College Soccer or Turn Pro?

As a soccer agent, I am frequently asked by parents whether their son or daughter should player soccer in college or try to turn professional right away. As someone who played Division I college soccer at Yale University, I can honestly say that playing soccer was...

Attorney Iveljic on Essential Elements of a Valid Contract

DocPro.com: Mag Mile Law Attorney Mario Iveljic gives insight into essential elements of a valid contract. Contracts form the backbone of society by establishing trust and minimizing risks between parties. A contract is the exchange of an act or promise between two or...

Loss Payees, Lenders and Mortgagee

Imagine the following scenario: You are a senior secured lender on equipment damaged in a fire. The owner of the property where the equipment is located files a claim against his insurance company for the loss. You, as the secured lender, are a loss payee on the...

Call Now to Get a Free Case Evaluation