As we are all aware, the current COVID-19 outbreak has resulted in the suspension of standard business operations, as well as the closure of thousands of businesses and public places, including shopping centers and malls around the globe. Local, national, and international health organizations, including the World Health Organization and U.S. Centers for Disease Control and Prevention, have issued recommendations and directives to suspend public gatherings. In addition, the majority of local and state governments have also ordered restrictions on the operation of non-essential businesses and/or ordered residents to shelter-in-place.
On March 19, 2020, California Governor Gavin Newsom issued an order that forced businesses deemed non-essential to close their doors indefinitely. While some companies were able to carry on throughout the pandemic by having employees work remotely, others have been forced to either operate on a limited basis or completely close their doors.
In anticipation of catastrophes such as the COVID-19 pandemic, many businesses pay for and obtain insurance coverage known as Business Interruption Insurance under their existing Property and Casualty Loss policies.
How Does Business Interruption Insurance Work?
Business Interruption Insurance is a type of coverage intended to compensate policyholders for their losses if a business is forced to close temporarily. Most typically, it’s used during events like fires and natural disasters. Business Interruption Insurance can cover things like lost revenue, employee wages, rent, business loan payments, and taxes. If an event requires a business to reopen in a new location, Business Interruption Insurance can also cover relocation expenses.
For many policies that include Business Interruption coverage, companies may be entitled to up to twelve (12) months of lost profits and/or operating expenses.
Benefits of Working With an Insurance Attorney
Insurance carriers are happy to take premiums and not provide policyholders with the benefits of the Business Interruption coverage needed to sustain their operations. Unfortunately, as business losses continue to mount, insurance carriers have taken a position of regularly denying these claims. These issues have already become the subject of litigation around the country.
Dealing with big insurance companies can be very overwhelming, but at The Wallace Firm, we have years of experience taking on insurance carriers and it’s given us a lot of insight to the tactics they use to try and deny claims. In the case of the coronavirus pandemic, we know they’ll try to argue that a company’s location wasn’t physically damaged by COVID-19. We know they’ll try to argue the semantics of a policy. We know they’ll try to say they can’t be liable for claims involving business closures that are temporary, but indefinite.
Not only do we understand how insurance companies work, we know how to use the law to navigate the policy language and advocate on behalf of our clients to have coverage afforded. We’ll be on your side every step of the way to fight to help you get the compensation your business needs.
Can I Get Help With a COVID-19 Business Interruption Insurance Claim?
The Wallace Firm is actively representing California business owners who have suffered losses because of the coronavirus pandemic. Whether you’ve made a claim that has been denied or you’re preparing to make a claim, we can help.
To be eligible for compensation, you must meet the following criteria:
- You own a business in the state of California
- Your company has been financially impacted by the coronavirus pandemic
- You have a business insurance policy that includes Business Interruption Insurance
Contact a California COVID-19 Business Insurance Attorney
As business owners, we recognize that this is an unprecedented time that has negatively impacted a huge cross section of our business community and we want to help our fellow business owners keep going.
When you work with The Wallace Firm, you don’t have to worry about whether or not you can afford first-rate legal assistance. We’re handling these cases on a contingency fee basis, which requires no hourly fee and no retainer. If there is no recovery on the claim, there is no fee owed and we will advance all costs, which are only reimbursable if there is a recovery.
Every case is unique, so when you receive a free case evaluation from us, we’ll review your business insurance policy to figure out the best way to move forward based on your exact needs. Contact one of our business interruption attorneys today for your free evaluation.