Business Interruptions Due to COVID-19
Business interruptions resulting from the novel coronavirus are ongoing and business owners with business interruption insurance coverage who suffer a financial downturn because of the impact of COVID-19 may qualify for economic assistance from their insurance company. Under state and federal law, insurance companies owe a duty of good faith and fair dealing to the people and businesses they insure. And when they fail in this duty by refusing to make good on payments owed to policyholders, the policyholders may have grounds to file a lawsuit for insurance bad faith. This may be the case with insurers who are underpaying or outright denying legitimate business interruption insurance claims stemming from the coronavirus shutdown. Insurance coverage questions are likely to arise in cases where businesses have been ordered to close by the government, as we have seen with the coronavirus pandemic, and due to confusion about the wording of business interruption policies that require “physical loss or damage.” Having an attorney assist you in evaluating your business interruption coverage and claims of business loss can help you obtain the maximum recovery possible.