In the wake of the Coronavirus crisis, US businesses small and large are contacting their insurance providers to file for business interruption coverage. These claims come in the wake of lockdowns, stay-at-home orders, and a perilous re-opening process that has dismantled economic security.
Unfortunately, many business owners and law groups alike are finding that winning compensation for these losses is not always a guarantee. This is due to a combination of factors ranging from restrictive policy working, lack of judicial precedent, and governmental disorganization which has left each state to be their own separate battleground.
Even so, those in the legal profession are hard at work trying to help businesses weather the storm. If your business suffers from lost income due to coronavirus, there may be hope to gain compensation through filing an insurance claim. See what you need to get started, below.
Business interruption insurance is made to cover for loss of revenue due to property damage. While this language is useful for natural disasters that cause physical damage to storefronts, it leaves a grey area when the main source of damage is something less concrete, such as a pathogen.
At its core, the coronavirus does not pose threat to the structural integrity of a business. Thus, even though businesses have lost incredible amounts of revenue, insurance companies are remaining adamant that policy coverage would not apply to the virus.
However, as we write about in a previous article, law firms are getting creative with how they argue this new breed of cases, trying to ensure their clients get the most compensation possible. This has resulted in new hope for businesses that desperately need coverage for loss.
In law, there is a concept called burden of proof which indicates who must bring forth the evidence within a case. In a business interruption insurance claim, it is thus the policy holder’s burden of proof to show their business was adversely affected and, given the evidence at hand, they are entitled to compensation.
As such, when you begin filing for compensation, there are certain types of records that are important to have ready to file as evidence within your suit. These will be the bedrock of your damages, as outlined in the section below.
Anytime you are filing a case and looking for compensation in return, you need to prove you have suffered damages. In terms of insurance claims, this will include the monetary losses suffered by your business during closure in addition to the theoretical losses faced if you are operating at limited capacity.
For business interruption, losses suffered include those that are in the following categories:
While this list is not extensive, it is a jumping-off point on records you may want to start collecting even if you are in the early phases of seeking legal aid.
Having information is meaningless if you cannot verify its source, credibility, or accuracy.
The most important piece of information you can preserve in this category are your pre-closure numbers. This includes your average payroll, shipments, orders, costs, and overall revenue.
These will be used to compare against your current rates in the same categories, thus showing differences in cost and revenue to determine overall damages.
Even now as businesses are allowed to re-open, many feel it is unsafe to do so. Further still many businesses in hard-hit sectors are forced to operate at reduced capacity, making their financial stability shaky at best.
If you are worried about your insurance company not compensating for these kinds of business losses, it’s best to have an attorney make your claim as bulletproof as possible.
Located conveniently in West Palm Beach, we can handle all your interruption insurance needs. Staffed with experienced lawyers, there is very little we have not seen and can get started on filing a claim as quickly as possible.
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.