Business Interruption Claims for Owners of Bowling Alleys & Arcades

Whether you’re a Los Angeles resident or are just visiting the area, stopping by one of the many arcades or bowling alleys can be a very fun way to spend an afternoon or a night out. Kids and adults alike can find lots of ways to have fun while spending time there. But given that bowling alleys and arcades are both full of high-touch surfaces and players often come close to each other, they were among the many types of businesses forced to close under Governor Gavin Newsom’s orders to prevent the spread of coronavirus. 

Coronavirus Business Losses for Arcades & Bowling Alleys

Unlike many other types of businesses, the nature of bowling alleys and arcades makes it difficult for them to offer at-home versions of their services. Since many arcades sell food and drinks, some have been able to keep a little bit of business going by offering take-out or delivery orders of food. But even those that are able to offer food orders during the shutdown are likely generating much less revenue than they normally would be. 

Bowling alleys and arcades are also popular locations for special events like birthday parties, fundraisers, and corporate outings. As the coronavirus pandemic led to many of those types of events being either cancelled or postponed indefinitely, turning into significant monetary losses. They also often draw big crowds for events like pinball and other gaming tournaments, bowling league nights, and bowling tournaments, all of which can boost food and drink sales and bring in extra revenue through registration fees.

If an arcade game needs to be repaired, the coronavirus outbreak could potentially make it more difficult to find someone who can come out to repair the machine or make it harder to source the parts that are needed for the repair. This can be particularly problematic for owners of arcades that specialize in vintage games and have more limited options for repairing their games even under more ordinary circumstances. 

Business Interruption Claims for Arcades & Bowling Alleys

Business owners know that they might encounter a time when they might have to temporarily close up shop, whether it’s because of a fire,storm damage, or a power outage. They also know how costly a temporary closure can be, even if it’s just for a day. When facing an extended temporary closure, they not only lose revenue, they have to worry about things like rent/lease payments, meeting employee payroll, and how to make payments on existing business loans. In some cases, they may need to deal with the costs of relocating so that they can continue doing business.

To prepare for these types of emergencies, business owners commonly look for business insurance policies that include business interruption coverage and/or civil authority coverage. Business interruption coverage helps cover many different kinds of monetary losses that come from a temporary closure while civil authority coverage protects business owners if they need to close temporarily because of a government order.

With businesses in a wide range of industries being forced to shut down because of the coronavirus pandemic, insurers are eager to deny as many business interruption and civil authority claims as possible. For example, one argument they’re often using is that coronavirus doesn’t count as a type of property damage that would allow policy holders to collect benefits. Even those with civil authority coverage are also often having their claims denied because insurers don’t believe it’s a type of physical property damage.

Help for Denied Insurance Claims

Just because your claim for business interruption insurance benefits has been denied, that doesn’t necessarily mean you’re out of options. Remember, insurance carriers will gladly take your payments for premiums, but they have a vested interest in paying out as little as possible. 

The Wallace Firm is now helping California business owners with their business interruption claims. Whether you’ve made a claim and been denied or are in the process of getting ready to make a claim, our lawyers can work with you to give you the best chance of receiving the benefits you need. We deal with insurance companies all the time and know all the tactics they’ll try to use to get out of paying out on claims. These cases are being handled on a contingency basis, so you won’t have to worry about any upfront fees. Contact us today to see how we can help.