Business Interruption Insurance and COVID-19
The crisis that the world is dealing with is unprecedented in our lifetime. People are worried not only about their health and the health of their loved ones but about the long term survival of their businesses and the businesses upon which they rely to operate. When the crisis passes, we expect to be asked by clients whether they are insured for the business losses that they have suffered. The answer to this question is dependant upon an interpretation of the wording of your commercial insurance policy.
Insurance policies are all different and can be difficult to understand. There are provisions that detail what is insured and there are exclusions that operate to limit the insurer’s liability. These provisions must be read together to come to an understanding of whether a business loss is covered. Generally, these policies provide for coverage when there is a physical loss. For example, there is coverage when the building in which you operate your business burns down and you have loss of property and loss of income. This example is a clear case for a claim under an insurance policy, although sometimes this too can lead to litigation when there is a dispute over valuation of the loss.
Insurance coverage for the business losses from the COVID-19 pandemic will be more difficult to claim and will require a detailed analysis of the insurance policy covering your business by an expert in the field. We are experts and can help you with the claim. We can also shepherd you through the claim process and litigation if necessary. Our lawyers have a unique and in depth understanding of insurance and the way in which commercial insurers operate.
If you need us, our Litigation lawyers are here to help.