COVID-19 has turned the world as we know it on its head. Everyone in Florida and throughout the world is worried about their financial and physical health, due to this terrible epidemic. Lives and livelihoods are being lost every day and apart from what is already being done and taking precautionary measures, there isn’t much else that can be done; at least not on a global level.
However, when it comes to your wellbeing and the wellbeing of your business, you need to do everything you can to ensure the prolonging of your assets. Therefore, it could be possible to claim business interruption insurance due to business shutdown during COVID-19.
It is imperative that you speak to a business interruption attorney but when you do, it is always better if you are armed with some information. Here is some information about the grounds on which you and your lawyer might be able to make a business interruption claim on your behalf:
Reviewing Your Insurance Policy
First and foremost, it is important to ask a business interruption attorney to review your insurance policy. After all, there could actually be a clause in your policy that is applicable for loss of revenue due to COVID-19.
According to the National Law Review, business interruption insurance coverage is usually reserved for situations where physical loss or damage to insured property is sustained by a covered loss as defined in the policyholder’s insurance policy. This is usually fire, theft, flood, or the like, given the stipulations of the policy. However, after early virus outbreaks such as SARS and rotavirus, many insurance companies added exclusions to a pandemic or even mass infection situation.
Nevertheless, businesses might still be eligible to claim business interruption due to COVID-19, depending on your specific coverage. That is why it is vital to have a business interruption lawyer review your insurance policy.
That way, your lawyer can carefully review the policy language, to determine what kind of bases (if any) you have when it comes to making a COVID-19 business interruption claim.
Insurance Policy Language
Legalease is the language that is commonly found in many types of contracts, terms and conditions, agreements, and insurance policies. It is the language of lawyers, which is why you need a business interruption lawyer to decipher it.
It is through this policy language that your attorney will find the ways they can build a case. The circumstance and specificity of your business will supply the final pieces to lay the foundation of the case but your insurance policy language will show your attorney what they are working with.
It is through the culmination of your business’ situation and the policy language that your lawyer might be able to make a case on these grounds:
Government Shutdown
While by the very definition a true tragedy is out of the business owner’s control, this pandemic offers an interesting case for a business interruption insurance claim. The government shut down the business. The business did not make this decision. The business had no control over the shutdown.
Therefore, it is possible for your business interruption attorney to present a case that stated since it was completely out of your hands, this constitutes a legitimate business interruption claim. This is not a business that closed its doors on the threat of a viral infection for their own personal wellbeing; this is a global pandemic and the quarantine order was sanctioned by the federal government.
Of course, since it is the government that enforced the closure of non-essential businesses, this could be a sticky case. Unfortunately, the legal complexities that COVID-19 has already caused is likely to make any argument of business interruption insurance murky. So, don’t let that scare you.
Contingent Business Interruption
Contingent Business Interruption is a type of insurance that is usually an add on (which means you hold it separately than what is included in a larger policy) that covers unforeseen interruptions to your business. This, along with any other specific business insurance policy is likely to have a time limit. Again, this would be specifically addressed in the policy language. However, depending on how long quarantine remains in effect and the particulars of your policy, there is a chance this could work in your favor. Or at the very least, your business interruption attorney could help argue this clause into your favor.
Supply Chain Interruption
For businesses that might have particularly stringent policy language binding their legal claim options, a business interruption attorney might opt to focus on the supply chain interruption of essential business goods. Obviously, if you do not have a working supply chain, you cannot get products. If you do not have products, you do not have a business and therefore, you shut down to save on costs of running what is essentially an empty storage room.
The beauty of this argument is it is not directly linked to the shutdown or even to COVID-19. It is exactly what business interruption insurance is supposed to protect against; the loss of income due to an unforeseen force inhibiting your ability to do business.
Precedent
Precedent is a gamble, especially since there haven’t been any tried cases to date, concerning a business interruption claim. However, there are cases that have already been filed and therefore, if those cases set a precedent in favor of the business owner, it is going to be a win for all business owners.
The unfortunate news about this is that these cases are likely to take years to get straightened out. Yet, the silver lining is that by the time your case does go to trial, a precedent could be set. A competent business interruption lawyer is going to keep a watchful eye out on cases like this and therefore, they will know the ins and outs of the first cases to be tried. That means that if there is a precedent argument to be made, your business interruption attorney will know exactly how to make it.
In summation, these unprecedented times are forcing people, business owners, especially, to focus on getting creative, simply to survive. That is why speaking to your business interruption lawyer is a great course of action. If you follow the information here and remember to discuss these points with your lawyer, together, you have the possibility of putting in a business interruption claim.
For more information or to schedule a free review of your business interruption insurance policy, contact The Injury Firm at (954) 951-0000!
