As the government forced shops to shutter citywide in an effort to help curb the spread of the coronavirus in late March, many business owners figured they could depend on their “business interruption” coverage to cover their losses. But, instead of helping, their insurers interrupted their plans and shattered their financial recoveries.
Most, if not all, of the business interruption insurance claims have been denied, according to advocates and small business owners. The commercial insurance industry is insisting that anyone looking to recoup losses should have paid for special “pandemic insurance.”
Interruption claims are generally awarded due to direct physical damages to a property, such as fire or hurricane, which render a business inoperable. However, insurers continue to argue that COVID-19 does not qualify as causing direct physical damage, resulting in a near-universal denial of claims for businesses across the country. NYC business owners argue that this type of interruption, due to the action of civil authority, is exactly the kind of coverage they have been paying for years.
Legislative Relief Stalled
In an attempt to get business owners the working capital they need and deserve under their insurance policies, Assembly member Robert Carroll (D-Brooklyn) introduced a bill in late March that would make insurers pay what he says they owe.
The bill is currently in committee, with 35 cosponsors. It aims to compel insurers to pay out COVID-19 related interruption claims for shuttered small businesses with fewer than 250 employees. Similar bills are also under consideration in several other states, including New Jersey.
You Deserve More!
The bottom line is that if your insurance policy includes business interruption coverage and your business suffered losses as a result of the government shutdown of non-essential businesses, you deserve compensation and justice.
The legal team at Gersowitz Libo & Korek, P.C. is dedicated to helping business owners fight for their rights and get the compensation they deserve under their insurance policies for loss of business resulting from the coronavirus pandemic.
Business Interruption by the Coronavirus Pandemic? Call Us Now!
If you have any questions about your business regarding COVID-19 or to see how we can help, please call Gersowitz Libo & Korek, P.C. at 1-646-798-1535.