In our present society, many industries are able to take their business online and continue on with minimal interruptions during the American surge of Covid-19. One industry that cannot make the transition to digital business however, are hospitality establishments.
Hitting hotels and restaurants particularly strong, Covid-19 has made it nearly impossible to operate business. With repeated closures, case surges, and staff quarantine, hotel and restaurant owners alike are looking at an uncertain future.
For many, the loss in revenue has them eyeing their insurance policies to see if business interruption insurance can help cover some of the losses due to the virus. Unfortunately, there is little help available for them as insurance companies are fighting against the very businesses they claim to protect.
As such, the legal industry has come front and center in the fight for businesses when it comes to insurance coverage and business interruption losses. Red below to learn how lawyers are working toward just outcomes for those who serve in hospitality.
By this point, our readers know we have returned to the topic of business interruption insurance many times over. Through our articles, we have explored the many nuances of such claims in addition to what types of damage they are meant to cover and how coronavirus is impacting claims.
Generally, business interruption claims are limited to covering business losses where physical property damage causes a business closure, thus interrupting revenue. These closures must be the direct result of the physical loss or damage and, as such, many policies have several coverage exclusion. Among these, virus exclusions are increasingly common. The end result is that insurance companies claim they are under no obligation to reimburse business owners of the basis that the business loss was caused by a virus.
While lawyers are fighting back against this mindset, it is still too early to tell which ways the case law will be interpreted on either side of the case. However, it still may be worth filing a claim. Read why, below.
Those in the hotel business have been decimated by the impact of the coronavirus. In addition to the social distancing measures in place for the immediate future, there is the real fact that many individuals are not going to feel comfortable traveling for a long time after restrictions are lifted. This fact is made only more apparent as cases spike with each listed restriction, sometimes causing regions to go back into lockdown.
For many clients, the overall consensus is that it’s better to wait than be sorry. As such, the impact of the coronavirus is going to impact hotel owners long after restrictions are lifted— in fact, the industry may not see recovery until the virus is entirely under control.
While unfortunate sounding, there is a silver lining in the government restrictions for hotel owners. Even though insurance policies often exclude coverage for viruses, the fact that many closures and curfews have been given through government order may be the saving grace for business interruption claims. With this in effect, it creates a loophole in which hotel owners may be able to seek coverage due to a non-viral cause, thus averting the exclusions.
While the restaurant industry may fare slightly better with take-out options and outdoor dining, they are still affected in many of the same ways seen in the hotel industry. While challenging, this also means the same type of exceptions and potential loopholes apply. These include citing government orders as a possible method of claiming business-related loss.
For a more in-depth review on how Covid-19 affects restaurants specifically, take a look at our article on the topic.
Now more than ever, having an experienced business claims attorney is more important than ever. The difference in experience could mean the difference between a compelling case and one that falls flat, ultimately losing you coverage.
Lawyers get into the profession of law, for the most part, to help bring justice to the public. This is no exception to the lawyers at Dave Roy Law.
As such, we are deeply concerned about the impact of the coronavirus pandemic on our local population.
With experience and expertise in many areas of litigation including business insurance litigation, bankruptcy, and divorce, we are here to serve the people of Florida as they navigate the troubling times ahead.
Located conveniently in West Palm Beach, we are dedicated to helping you and your business recover from the devastating effects of Coronavirus. Start on the right foot by contacting us at 561-729-0095 to schedule an appointment and get your business back on the right track.