Many businesses that have suffered enormous losses due to mandated Coronavirus closures, have filed claims with their insurance companies. The most common claims are Business Interruption Claims for those who have an All Risk Policy with Civil Authority Coverage. Unfortunately, most Insurance Companies are finding reasons to deny these claims leaving business owners solely responsible for all financial losses. A Coronavirus Insurance Lawyer can help you determine the provisions in your insurance policy and the necessary steps to recover damages from a claim that has been denied.
How did we get to this point in the state of California?
As the Coronavirus (COVID-19) appeared throughout the state and the country, Governors and other elected officials raced to quell the spread of this infectious disease.
In California, as early as March 4th, Governor Newsom declared a State of Emergency to make resources available and to further protect the residents of the state. This action was quickly followed by school closures, cancellation of mass gatherings, and implementation of virtual meetings for government officials in the state.
The virus continued to spread and negatively affect the people of California. On March 19th, a Stay at Home Order was declared to protect the health and safety of the people of California. Only those designated as Critical Infrastructure Sectors, were able to operate their businesses.
This left numerous businesses no option, but to shut their doors and incur heavy financial losses.
Dine-in restaurants, bars and nightclubs, gyms and fitness centers, entertainment venues, public events and gatherings, hair and nail salons, and convention centers were all prevented from operating their businesses. As of May 11th, unemployment in California has reached 20% and this number could continue to grow.
Can a Coronavirus Insurance Lawyer help me sue my insurance company if they deny my claim?
Currently, there are numerous lawsuits pending in California and the United States against Insurance Companies for denying claims related to Coronavirus (COVID-19). Coronavirus Insurance Lawyers are assisting these businesses by filing lawsuits on their behalf. Although policies vary from company to company, there are some things you can consider when determining if you should pursue a lawsuit.
First, you need to understand what your policy covers. Business Interruption Insurance can vary, but it typically covers losses from natural disasters. It is meant to cover loss of income the business would have had if the incident did not happen. Many of these policies are structured around physical damage to property. Some businesses are already constructing claims that pinpoint the physical damage caused by the Coronavirus (COVID-19).
Many policies alo extend coverage to losses incurred due to interruption of supply of goods and services. In addition, some policies have “Special Extensions” that include losses caused by human disease.
In addition, many Business Interruption Policies include the provision of “Closure by Civil Authority.” This provision commonly covers extra expenses incurred by action of civil authority that prohibits access to the premises. Some of these provisions include physical damage to property, as a prerequisite to closure by a civil authority while other policies do not. Those policies usually indicate that the provision of Closure by Civil Authority applies when it is the result of a peril.
The Closure by Civil Authority may apply to shut down orders enacted throughout the state of California. In fact, Coronavirus Insurance Lawyers have current lawsuits pending against insurance companies related to this specific provision.
What are my next steps if I believe I have a claim?
All insurance companies and policies are different. You will need to bring your full policy to a qualified Coronavirus Insurance Lawyer. The attorneys at Siegal & Richardson will be able to interpret the technical and legal language in your policy and explain what your next steps are.
At the law firm of Siegal & Richardson, we have a history of taking on big corporations and are experienced at fighting on behalf of those who cannot fight for themselves. Please contact us to help you recover your Coronavirus (COVID-19) insurance claim and pursue justice on your behalf.
Mandated closures have had devastating affects on businesses in California and throughout the country. We know you want to see your business recover and we have the experience and resources to help you realize that dream.