Across the United States, the coronavirus pandemic has resulted in countless business adjustments and closures, many of which have caused owners to suffer significant financial losses. If you are one of the thousands of Kentucky business owners who purchased business interruption insurance to cover expenses stemming from an unexpected closure, you probably expected this coverage would help you out during this unprecedented crisis.
Unfortunately, many Kentucky business interruption claims have been denied in recent weeks based on policy fine print and technicalities, leaving owners and operators with tremendous COVID-related losses. In order to protect your livelihood and get the coverage you need, it may be wise to talk to one of our skilled attorneys about the best strategy for filing such a claim and, if necessary, how to contest a rejection.
What Does Business Interruption Insurance Cover?
The purpose of business interruption insurance is to protect business owners from both lost income and expenses related to property damage in the wake of a major disaster. This particular coverage is typically folded into larger commercial property insurance policies, and it is usually meant to cover property and asset losses following a fire, storm, or flood.
If a business interruption claim is approved, a Kentucky business should be able to recover for revenue they lost because of their forced closure. They should also be able to receive further benefits to cover property payments, tax obligations, employee pay, and more.
However, this coverage is typically only applicable when a business owner provides proof that their business suffered a “physical loss”—a descriptor that does not necessarily apply to a viral pandemic, -either because the policyholder could not demonstrate physical loss or because their policy specifically excluded infectious diseases from coverage. Many business interruption claims related to COVID-19 closures have been rejected by insurers.
Options for Contesting Claim Denials
Kentucky business owners who have had their business interruption claims denied may have several avenues for appealing that decision, all of which would be much easier to pursue with help from our team of qualified lawyers. First and foremost, legal counsel can help identify whether a claim denial was valid in the first place by examining the specific language of an applicable policy.
For example, if a policy expressly covers “all risks” and does not explicitly exempt viral outbreaks from coverage, a rejection of a claim based on coronavirus closure may be worth appealing in court. Any policy language related to government-mandated closures or reductions in operations may be relevant as well, especially if pandemic-related quarantine measures continue for a long period.
At present, it is unclear how the numerous lawsuits filed on these grounds will play out, or whether intervention from the state or federal governments will loosen restrictions on business insurance coverage during the current crisis. A conversation with a business interruption attorney could help clarify the best option for your situation.
Legal Counsel Could Help with Business Interruption Claims in Kentucky
Whether your company was forced to close due to a fire, natural disaster, or the recent viral pandemic, payouts from your business interruption insurance may be crucial to keeping you afloat during this challenging time. If your insurance company denies your claim, you should explore every option available to you for contesting that decision and recovering the benefits you paid for.
By working with our qualified lawyers, you can put yourself in a much better position to achieve a positive outcome from your Kentucky business interruption claim. Call today to set up a consultation and discuss your options.