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COVID 19 Business Interruption Insurance

Do you need assistance with a claim against your insurance company for losses to your businesses caused by COVID 19? Business Interruption Insurance may be the answer to your problem, which is designed to compensate a policyholder for lost income resulting from a disaster.

Business Interruption Insurance, which is usually part a property insurance policy, is additional insurance that generally includes coverage to help a business to return to normal operations after a disaster. Business Interruption Insurance may include (1) ingress/egress coverage, which applies when entry to or exit from the business property is made impossible or extremely difficult; (2) services interruption coverage, which covers losses caused by the inability to access vital services, including communication, electricity, water, gas, air-conditioning/heating, or transportation; (3) civil authority coverage, which will provide business interruption coverage when an insured’s property is impaired or prohibited due to an order of civil authority, such as evacuations, cancellations, curfews, roadblocks, or other government-initiated actions that prohibit and prevent access to the insured’s property; or (4) rental value and rental income coverage, which as the name implies, provides coverage for lost rental and related payments.

Given unique coverage issues that will arise in connection with seeking business interruption coverage for losses stemming from COVID 19, it is important to contact an insurance attorney as quickly as possible to help you assess coverage.

One of the common problems a policyholder will face in seeking coverage under a business interruption policy are (1) requirements that there be physical loss or damage to property, (2) virus or pandemic-related exclusions, (3) requirements that certain elements be met in order to obtain coverage under the types of business interruption coverage mentioned above, and (4) correctly measuring damages in connection with a business interruption claim. Moreover, given the nature of the COVID 19 pandemic, an insurance company may seek to obtain early concessions from their insureds that result in loss of business interruption coverage. Further, the specific policy language involved may very well determine the business owner’s rights to recover under their business interruption coverage.

When filing a business interruption claim, supporting documents are needed. These documents include business expense reports, business revenue reports, details regarding business history, number of employees, and more.

Generally, a Business Interruption Claim will be valued as follows:

Net Income + Continuing Expenses + Extra/Additional Expenses = Business Interruption Loss

When determining damages for a business interruption claim, several elements need to be inspected-some being utility costs, payroll, taxes, and additional advertising.

Given that a business interruption policy may be the difference between the life or death for your business it is important that you call one of our Houston insurance attorneys as soon as possible to assess your business interruption claim.