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Business Interruption Insurance Exclusions

Business interruption coverage varies from policy to policy, but some of the expenses or losses not generally covered by such insurance may include:

  • Income that you have not documented prior to your business shutting down (undocumented revenue)
  • Damage that would typically need to be covered by a separate sort of policy, such as flooding in states where you would need to have flood insurance to receive an insurance payout
  • Utilities, if your business is being charged for them during an interruption in business
  • Partial losses, which may be relevant to businesses that are not completely shut down
  • Any specific cause of damage that your business interruption insurance clause excludes from coverage

Exclusions will be largely dependent on your specific policy and the business interruption-specific language within.

What Business Interruption Insurance May Cover

Business owners who have seen their revenues dry up amidst the COVID-19 (coronavirus) economic shutdown may be more interested in what their business interruption insurance may cover more so than what it may not cover.

According to the Insurance Information Institute, it is possible that your business interruption insurance will cover:

  • Revenue that you have lost because of the coronavirus shutdown
  • Employee salaries or wages
  • Employee benefits
  • Rent or mortgage payments for the property where your business is located
  • The cost of transitioning your business to other formats (such as a digital store) or relocating

Business interruption insurance may be included as part of your property and casualty insurance, which may cover any damage that caused your business to be temporarily shut down, but business interruption insurance could be included in a business owner’s policy (BOP).

Understanding What Your Business Interruption Insurance Covers

If your business has been impacted by the mandates stemming from COVID-19, you may have considered what insurance coverage could qualify you for financial assistance. If you have not already, you should:

  • Read your business-related insurance policies, specifically any clauses pertaining to business interruption
  • Speak with somebody who may be able to clear up any confusion you have with your policies, possibly a lawyer

It may not be immediately clear what your business interruption insurance does or does not cover, even after speaking with a lawyer. There is also a chance that any claim you have filed or will file could be denied. Do not worry, as the laws and insurance precedents surrounding coronavirus and its impact on businesses is far from final.

Calling a Lawyer May Be Worth Your Time

Business owners have no shortage of headaches and responsibilities during this confusing, uncertain time. As somebody responsible for a business, you may be:

  • In a seemingly-ceaseless process of applying for a small business loan from the S. Small Business Administration (SBA) (you are not alone if your attempts at doing so have proven unsuccessful)
  • Attempting to refashion your business to scrape together some semblance of revenue in the face of this indefinite interruption to normal business operations
  • Navigating difficult decisions about retaining or firing some or all of your employees
  • Faced with other personal obligations that do not go away despite a significant uptick in business-related stresses

Each of these responsibilities have likely added stress to your plate and consumed an abnormal amount of your time. Calling a lawyer may allow you to:

  • Achieve clarity with respect to business interruption insurance coverage in particular, as well as other legal and financial matters that you are facing
  • Allow you to delegate one or more critical responsibilities

A lawyer can help you wade through the difficulty of this period.

Specific Duties of a Lawyer

Most lawyers are familiar with long, carefully-worded documents. This may make them a helpful resource when it comes to interpreting your insurance policies. You may expect a lawyer to:

  • Read and assess the entirety of your business-related insurance policies, documenting specifically language that could impact your business interruption coverage
  • Speak with their colleagues in the insurance and legal fields for additional insight into your specific policies
  • Help you file a business interruption claim if you have not done so already
  • Handle correspondence with your insurer as it pertains to your business interruption claim
  • If necessary, contest any denial of your claim through legal channels

Many business owners are facing a critical juncture in the future of their company, and you may be in the same boat. A lawyer can help you.

Call Our Team at The Landau Law Group Today

The law surrounding COVID-19-related business losses is far from settled, and precedent for business interruption insurance and the novel coronavirus also remains unclear. It may be in your interest to file a business interruption insurance claim and (perhaps) to take legal action in pursuit of coverage, if such a step is necessary.

Call our team at The Landau Law Group today at (866) 703-4878 to discuss how we may be able to help you fight for your business.