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9 Business Interruption Insurance Questions

Due to the growing threat of COVID-19, many businesses have been forced to shut down temporarily. In some cases, you might be covered by insurance for business closure. However, these policies can be difficult to understand. Often, it’s hard to know which circumstances are covered and which ones aren’t. To make this easier, let’s look at some of the most important questions you should be asking to make sure that you understand your policy.

1.      What Type of Things Are Covered By My Business Interruption Insurance?

There are multiple things that your business interruption claim will be able to cover. First, you might be able to get compensated for any lost revenue, which you would normally be receiving. You might also be covered for a mortgage, lease, or loan payments. You might be able to claim for the costs associated with paying taxes and payroll. In some cases, you might need to move your business. If this happens, you might be able to claim these costs. The specific policy you take out will determine the type of things you are able to claim for.

You will also need to make sure that the event that forced the shutdown is included in your policy. In most policies, you will need some kind of damage to your property. For example, you might not have been able to continue trading because of a fire. In this case, your lawyer will need to show that the COVID-19 virus was a circumstance that you are covered for.  Due to the unprecedented nature of this health crisis, this can be a very difficult job.

In order to claim for these costs, you will often need to provide evidence. For example, you might need to show that you have made a mortgage payment or have been unable to operate. In this case, your business interruption lawyer will be able to help you find the right documents and present a strong case.

2.      What Happens If I Have More Than One Business Interruption Policy?

This can often depend on the type of policies that you have taken out. In some cases, you will be able to get broader coverage options. In other cases, there will be more restrictions that you need to work through. Because of this, it’s best to talk to your business interruption attorney. They will be able to give you more information about your current situation and how your policy will impact on your ability to make a successful claim.

3.      I Don’t Have A Business Interruption Policy- Will I Be Covered Under A Different Policy? 

If you don’t have a business interruption policy, you might be unsure about whether or not you have any protection. However, you might likely be able to make a claim under a different part of your existing policy. As an example, there might be times where you are protected against supply chain disruptions. In some cases, a vendor dispute might be included as part of the claim. You might also be able to make a claim because of action taken by government authorities. In this case, as a government response to try and slow the spread of COVID-19.

In this area, it’s best to contact a business interruption insurance attorney and discuss the situation. They’ll be able to tell you more about your situation and whether or not you’ll be able to get compensation. When you explain that your business closed because of the Coronavirus government-mandated shut down, they will be able to review your insurance plan and tell you more about anything that you might be entitled to claim.

4.      How Is A Contingent Business Interruption Insurance Policy Different from A Traditional Business Interruption Policy?

A regular business interruption policy often protects you from things that happen on your premises. A great example is a fire that breaks out on your property, making it impossible for you to continue to do business. However, a contingent business interruption policy can also extend some coverage over things that happen on other people’s property. For example, if one of your neighbors has a fire that forces the entire street to be shut down. There are also some cases where this might extend to an issue with the supplier or a vendor dispute. However, the exact amount of coverage provided can often vary.

To determine the extent of the coverage provided by your insurance policy, you should make sure to contact a business interruption attorney. They will be able to examine your insurance policy and determine whether or not you will be able to file a business interruption insurance claim, given the circumstances.

5.      How Is The COVID-19 Crisis Treated Under A Business Interruption Policy?

This is a very complex area for you to consider. A global pandemic event, such as the COVID-19 crisis are, thankfully, very rare. For this reason, likely, it won’t be specifically addressed in a business interruption insurance coverage policy. However, you might have an insurance policy that specifically excludes claims triggered by diseases or pandemic events. In this case, you won’t be able to get any compensation. Further adding to the complexity is that many of these policies will need some kind of property damage before you will be able to make an insurance claim.

As you can imagine, trying to analyze this rapidly evolving situation and determine how it impacts your right to make a claim can be a very difficult job. For this reason, it’s recommended that you talk to an experienced business interruption attorney. They will be able to look at your business insurance policy and help you clarify your rights.

6.      I Don’t Have Insurance That Covers COVID-19- Can I Buy Some?

In most cases, you won’t be able to get an insurance policy that applies to known, ongoing events. This would cover the global spread of the COVID-19 virus and its effects on the supply chain. For this reason, you might need to stick to any existing insurance products that you have taken out. However, you might want to investigate a surplus line. These products might be appropriate to help you deal with this crisis. But they can also be a risky and expensive option. For this reason, it’s recommended that you investigate all the potential options and understand the risks before you sign any policy. You might want to have a business insurance lawyer look over the agreement to make sure that you understand what you are signing.

7.      If My Employees Don’t Come into Work Because Of COVID-19 Will I Be Covered By Business Interruption Insurance?

There are some cases where, while you haven’t had to close your business, your employees might be unwilling to come into work because they are concerned about the potential risks posed by the COVID-19 virus. As the concern about the virus continues to rise, this problem will likely become more frequent.

Sadly, it’s unlikely that your staff choosing not to come into work will be enough to trigger a business interruption insurance policy claim. In most cases, you will need to have some kind of physical damage to your property, like a flood or fire.  However, this might not be in all cases.  It is wise to have a business interruption lawyer review your insurance policy.

8.      How Does the Florida Governor Declaring A State Of Emergency Affect My Insurance?

The Governor has been carefully monitoring the development of the coronavirus and trying to predict how it could impact the people who live in Fort Lauderdale, Florida. The fact that the State of Emergency has been declared shows how seriously they are taking the coronavirus. However, it’s unlikely that this will affect your insurance policy. As mentioned earlier, you will often need some kind of damage to your property to be able to make a business interruption claim.  This is getting into uncharted territory that is changing depending on the courts, so it is best to consult with an experienced business interruption attorney

9.      Who Can I Talk to If I Want To Learn More About My Insurance?

The current situation around COVID-19 is quickly evolving and rapidly changing. This makes this situation highly complex. To reduce the spread of the coronavirus, most businesses have had to radically change the way that they operate. Some have even been forced to close. In preparation for events like this, you might have taken out insurance for business closure. However, as we’ve seen, these policies can be very difficult for people to understand, especially as they often require some kind of damage to the premises to be able to make a claim.

Thankfully, you will be able to turn to a business interruption attorney. They will be able to examine your case for you. They will then be able to look at your insurance policy and help you make a business interruption claim. In this area, one of the best people to talk to is the professionals at The Injury Firm. Currently, we are offering a free review to those wondering what kind of insurance protection that have from the COVID-19 crisis. So, get in touch with the friendly team at The Injury Firm today and learn more about the situation: 954-951-0000.

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