Was your business interrupted by the COVID-19 lockdowns?
Having a small business during this time can be incredibly challenging. With most states under lockdown and people remaining in their homes, it can be hard to turn much of a profit. When a business is forced to close, like many are right now, sales plummet and many small businesses are unable to recover from the sudden loss of sales. What if there was another option? Thankfully, business interruption insurance can help protect business owners from these kinds of losses, but what exactly is it?
What is business interruption insurance?
Business interruption insurance is like rental insurance. It’s something that the business owners have to purchase before something goes wrong. This insurance is used to reimburse companies for lost income that is related to some sort of disaster, like storm damage, fire damage, or theft.
When a damage like this occurs and forces a business to shut down due to repairs, they’ll be able to collect some money from their insurance to cover the revenue they lost due to their closure. Business interruption insurance also covers other expenses while the business is closed, including bills and other related expenses like relocation costs, employee wages, or loan payments.
What is covered under business interruption insurance?
Business interruption insurance covers expenses when a business is forced to close. That means that the insurer will cover any physical damage and any loss sustained. Any income that is lost due to the closure will be paid by the insurer. The insurer is only required to pay for these losses until the business is able to get back on its feet and return to their normal business activity. The length of business interruption insurance also relies on the plan you purchase, as some offer more coverage than others.
Civil Authority coverage could also help cover your losses after the closure of your business. This coverage applies when action is issued as the result of a physical loss or damage, or when access to the premises is impaired or prohibited. This coverage does not require a physical damage or loss to be used, and some can be triggered by a stay at home order or a curfew. In Florida, a statewide stay at home order went into effect on April 3rd. Civil authority coverage begins 72 hours after access to the business has been prohibited.
Extended Business Income
Additional income assistance may be available to some businesses depending on the circumstances. If the cause of loss has been remedied (for example, if your business had a fire, and the repairs have been completed) you may be eligible for further income assistance. This coverage can be collected if your business is experiencing slowed profits due to the closure. The coverage will last until your profits return back to normal, or after a predetermined amount of time.
Extra Expenses Coverage
Insurance covers any extra expenses that may be incurred due to the nature of the disaster at your business. This includes anything that you would not have had to pay for if a disaster had not occurred. This includes things like additional security to protect the business, potential advertising costs to get your business back to where it was, disinfectant efforts, or relocation costs.
Does business interruption insurance cover my business during the COVID-19 outbreak?
Coronavirus has been causing a lot of problems for a lot of small businesses. Because of the stay-at-home order, there are a lot of small businesses that are experiencing interruption in their work. Many companies, large and small, have had to lay off a good percentage of their employees to remain afloat in this unprecedented time.
As this is something that we haven’t experienced before, there are many questions about whether or not people are protected. Will anyone receive any sort of help keeping their business open? Does business interruption insurance cover this kind of disaster? Unfortunately, many people are finding out that the answer to that question is no. While business owners are attempting to submit claims to their insurance companies for money lost during this time, their claims are being denied.
A few lawsuits have already been filed, such as one in New Orleans by a restaurant asking for their insurance to cover their loss of profits. The judge ruled that the insurance companies should be paying to cover these expenses related to COVID-19. If you have business interruption insurance and they’ve denied your claim, reach out to one of our talented business interruption lawyers today for assistance.
Contact a Business Interruption Attorney Today
If your small business has been affected by the COVID-19 outbreak, we want to help you get the insurance money that you deserve so you’re able to return back to business as usual. No matter the business, whether you’re a hotel, store, office, or restaurant, contact us online or at 772-225-4900 for more information.