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COVID-19 Business Interruption Claims

What keeps a business alive is generating revenue consistently enough to maintain its operations. That means for most businesses, there is never a day off. Many businesses do not have the luxury to stop selling inventory, manufacturing products, providing services or operating at full-range suddenly. Unfortunately, the novel coronavirus public health crisis has forced numerous businesses to suspend their everyday activities due to the presence of the this deadly virus on surfaces. The economic toll of the virus has caused an influx of businesses to file claims for business interruption coverage across the United States.

Business interruption insurance is typically purchased along with a commercial property policy or a business owner’s policy.  It can also be purchased separately as a stand-alone policy. The purpose of the insurance is to protect your business from unforeseen events, times of natural disaster and other unfortunate situations that could require you to suspend or reduce your business operations. The coronavirus outbreak has caused numerous business industries to sink, so it’s not surprising that thousands are filing business interruption claims across the United States.

Insurance companies may seek to deny your business interruption claim, citing various policy exclusions and limitations that may or may not apply to each individual claim. If you are looking to file a COVID-19-related business interruption claim or if your claim has already been denied, we urge you to contact experienced legal representation as soon as possible.

Texas Business Interruption Lawyers | Coronavirus

The coronavirus has wreaked havoc on business practices across the country. Filing a business interruption claim is the only option for many businesses hoping to stay afloat. If you have had issues filing a business interruption claim, or if you claim has been denied, then it’s important you get in contact with LeMaster & Ahmed PLLC.

The lawyers at LeMaster & Ahmed PLLC have more than thirty years of combined experience in insurance law. We will work tirelessly to advocate for your business during the COVID-19 crisis by negotiating with adjusters, examining your claim and going to court if necessary. Call us now at (888) 306-2119 to set up your first consultation with LeMaster & Ahmed PLLC. We practice throughout the State of Texas and have offices in The Woodlands and Plano, Texas.  We represent policyholders throughout Texas, including Houston, Galveston, Dallas, San Antonio, Austin, and the surrounding areas. We also practice throughout surrounding counties including Collin County, Dallas County, Harris County, and Montgomery County.

Overview of COVID-19 & Business Interruption Insurance

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What is Business Interruption Insurance?

Business interruption insurance is a type of insurance that covers the loss of income that a business suffers after a disaster. It generally covers the income lost due to a disaster-related closing of the business facility or due to the rebuilding process after a disaster.

Business interruption insurance differs from property insurance because a property insurance policy only covers the physical damage to the business, while a business interruption policy covers the profits that would have been earned by the business but for the disaster. Business income insurance is designed to put a business in the same financial position it would have been in if no loss had occurred.  This coverage is vital to businesses as it allows the business to survive even in the face of disaster.

It is important to understand the types of coverages available under the category of “business interruption” insurance.

There are four types of business interruption insurance:

  • Business Income Coverage: Business income is net profit or loss before taxes and continuing normal operating expenses, including payroll.
  • Extra Expense Coverage: Extra expenses are those above and beyond your normal monthly expenses that are expended to restore a business either at the original or temporary location.
  • Contingent Business Interruption Coverage: This coverage compensates you for any income you might have lost due to property loss or damage at a supplier’s or customer’s location. For example, this coverage may compensate you if you own a flower shop and your supplier’s location suffers a fire, preventing the supplier from fulfilling your flower orders.
  • Civil Authority Coverage: This coverage would pay for loss of income or extra expenses as a result of a government denying you access to your business due to a covered loss at a location owned by someone else.

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Why Is My Insurance Denying My Business Interruption Claim for Coronavirus Shutdowns?

There is no question that the coronavirus has had a devastating economic impact on nearly every industry in the United States. Businesses are being required to shut down  by the government and have little to no way to generate a profit. These businesses are turning to their insurers for coverage and many of those insurers are denying claims as a matter of course.  Many insurers are denying COVID-19-related business interruption claims by attempting to rely on a policy exclusion for “virus” or other pollutants.  Many insurers are also taking the position that there is no coverage for COVID-19-related losses because the losses did not result from “physical damage” to the business property.  The positions taken by many insurers are untested and potentially inapplicable in this pandemic we find ourselves in.  Moreover, these positions taken by many insurers are the exact opposite of the purpose of purchasing business interruption insurance.

All policies are different and require individual analysis and review.  Each business is different and the facts relating to their COVID-19 loss are also different.  Blanket denials of business interruption claims may be made in bad faith and without even an investigation of the facts of each case compared with each individual policy.

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How Can I Protect My Business During the Coronavirus Pandemic?

It is vitally important for businesses to review their insurance policies immediately and determine if you have business interruption coverage that may cover a COVID-19-related loss.  Insurance policies require notice of claims and set forth steps for making a claim that must be adhered to by policyholders in order to preserve valid claims.  If your business needs assistance in analyzing your policy, presenting a claim, or fighting a denial, the lawyers of LeMaster & Ahmed PLLC are here to help.

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Additional Resources

Small Business Administration – Visit the official website for the Small Business Administration (SBA), a cabinet-level federal agency fully dedicated to small businesses. Access the site to learn how they offering low-interest emergency loans to businesses affected by COVID-19, also known as the Economic Injury Disaster Loan (EIDL). Learn if you’re eligible and the process of applying for a EIDL loan.

Coronavirus Disease Pandemic | WHO – Visit the official website for the World Health Organization (WHO) and learn more about the novel coronavirus health crisis. Access the site to gain access to live updates on the virus, answers to your frequently asked questions, resources, and research and development of the pandemic.

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COVID-19 Insurance Claims Attorneys in Texas

If your business has been forced to shut down due to the COVID-19 crisis, then it’s within your best interest to gain legal counsel. Depending on the terms and conditions of your individual policy, you may have coverage for business interruption loss related to COVID-19. Call LeMaster & Ahmed PLLC for imperative advice and guidance on how to file your claim so you can receive coverage.

LeMaster & Ahmed PLLC has decades of insurance law practice. We will help you throughout the claims process and go to court with you if necessary to help you receive the coverage you are entitled to. Don’t wait another moment to call us at (888) 306-2119 for your first consultation free. LeMaster & Ahmed PLLC accepts clients throughout the state of Texas, including the greater Montgomery County and surrounding areas such as Harris County, Galveston County, Collin County and Dallas County.

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