In many states, Governors have declared a state of emergency to demonstrate the amount of the pandemic and facilitate the global goal to contain the virus. Stay-at-home orders have been given by governments in many other places around the world to minimize the spread of the coronavirus. But how does the declaration by your governor affect your business interruption insurance policy?
Consequences of No Declaration on Your Insurance Policy
As you know, no declaration can change your insurance policy’s terms. That means the governor’s declaration of emergency has little or no effect on the policy you have. Your chances of getting compensation for business interruption due to the declaration are relative. It all depends on the terms of the policy you hold and how you approach the claim process.
Ideally, a business interruption insurance policy requires related physical damage, which the governor’s declaration does not bring about. The declaration also does not mandate the insurance companies to alter their policies in any way. But the declaration has clearly interrupted businesses, including yours, and should stand for something. It is expected, therefore, that your business interruption claim should receive more weight from the declaration.
The declaration of a state of emergency in different states by governors and other directives to shut down businesses as a result of the coronavirus pandemic are actions by civil authorities. Most policies recognize such measures and their power to interrupt businesses. The implication is that businesses interruption insurance should cover them.
Making Insurance Claims May Not Be Easy
However, it will be difficult, of course, making claims based on the declaration of a state of emergency alone. In the case of the COVID-19 pandemic, it is clear that the interruptions are necessary to keep the world population safe, and insured businesses have a good ground to seek compensations for business interruption.
It is still important that you contact your insurance broker or insurer to discuss how the governor’s declaration and subsequent business interruption affects your business interruption insurance. You don’t have to do that alone as a reputable business interruption attorney will help you take a comprehensive look at the policy, represent you to the insurance company and take the right steps to get the benefits you deserve.
Call our law firm today for a free business interruption insurance policy consultation with our experienced business interruption attorneys. We will be happy to speak with you and advise you on the legal options available to you. 954-951-0000
