Business Interruption Insurance Claims Lawyers

stressed out about billsSome Maryland businesses may not survive the economic shutdown caused by COVID-19. Many business owners have struggled to obtain emergency loans from the federal Paycheck Protection Program. Their last hope for making it through the downturn may be their business interruption insurance policy.

However, these policies are generally used after natural disasters and the insurance company may claim COVID-19 losses are not covered. That is why you should strongly consider talking to a licensed attorney about your insurance policy. 

The Silver Spring business interruption claims lawyers at Goldberg Finnegan offer a free, no-obligation legal consultation. We are fully operational during this crisis, and you can get started from the safety of your home by calling or completing a Free Case Review form today. With eSign and other technology, we can protect your health while fully managing your claim in the way that is most convenient for you.

Our firm has obtained more than $130,000,000.00 on behalf of our clients. Founding Partner Kevin Goldberg is a member of the National Trial Lawyers Association – Top 100 and past president of the Maryland Association for Justice.

Free Consultation. No Upfront Fees. Ph (888) 213-8140

Can I File a Claim Over Losses Caused by COVID-19?

If you have business interruption insurance, this is a question you should discuss with an attorney as soon as possible.

The longer this shutdown drags on, the harder it will be for businesses to continue operating. After the shutdown ends, the country is likely to go into a recession, so compensation from business interruption insurance could be all that stands between staying open and going out of business.  

Whether you can file a claim for compensation will depend on many factors, including the terms of your policy. Generally, business interruption insurance covers the loss of income a business suffers when business operations are suspended or reduced. These policies will list covered perils or covered causes of loss.

A large number of business owners in the U.S. purchased all-risk commercial property insurance policies. This type of policy typically covers property damage or loss, unless the wording of the policy specifically excludes it.

Some business interruption policies provide compensation when businesses are shut down because of an order by a civil authority. That said, usually policies say there must have been physical damage from a covered peril. 

Our Silver Spring business interruption insurance claims lawyers are prepared to review your insurance policy and discuss whether you may be eligible for compensation. If the insurance company says you are not covered, speak to a lawyer before taking them at their word.

Reach us by phone at (888) 213-8140.

Compensation from a Business Interruption Insurance Policy

These policies may provide compensation for various monetary losses and expenses caused by the interruption of your business, such as:

  • Loss of revenue
  • Operating costs (rent, compensation for employees, etc.)
  • Phone bills, electric bills and other utilities
  • Lost profits
  • Tax payments
  • Cost of reopening
  • Cost of litigation

Generally, these policies provide compensation for up to one year or a reasonable amount of time to restore your property and allow your business to reopen. However, certain forms of compensation may be provided for a much shorter time. These limitations should be stated in your insurance policy.

If you hire our firm to represent you, we are prepared to pursue maximum compensation for your losses, as we know how important this compensation is to the survival of your business and the financial well-being of you and your employees.

Why Business Interruption Claims Over COVID-19 May be Denied

Unfortunately, many business interruption insurance claims filed over COVID-19 losses are being denied by insurance companies.

There are a variety of reasons insurers may give as to why these claims are not covered, such as:

Lack of Property Damage

These insurance policies are generally used to provide compensation for physical damage to your business, such as from a natural disaster or fire. If you file a claim because of the COVID-19 shutdown, the insurance company may say your losses are not covered because there was no physical damage to your business.

However, a virus may qualify as physical damage, as it made your business too dangerous for you, your employees and customers. Keeping your business open may have caused the virus to spread.

Your State Did Not Issue a Mandatory Stay-at-Home Order

This should not apply to claims filed in Maryland, as our governor issued a stay-at-home order. However, insurance companies may still claim it is your responsibility to mitigate damages that occur and deny claims on that basis. Maryland also made an exception for essential businesses, so if your business was considered essential your claim could be denied, even though your business is not bringing in nearly the same revenue as before.

Your Policy Specifically Excludes Pandemics, Viruses or Microbes

After the Severe Acute Respiratory Syndrome outbreak in 2003, many insurance companies updated their business interruption insurance policies to exclude coverage for viruses and pandemics. However, even if your policy lists these exclusions, they may not be enforceable. The language of your policy is the key, and this is something to review with your attorney.

You Missed the Deadline for Filing a Claim

Your policy may require you to file a claim promptly, even if you are still accruing losses due to the shutdown. You can continue keeping track of expenses and losses as you go through the claims process. However, if you miss the deadline for filing a claim, it may be difficult to overturn a denial.

If your claim was denied, our attorneys may be able to overturn the denial and pursue compensation for your struggling business. This may include challenging a denial in court, including parts of the policy that exclude viruses and pandemics.

While some law firms are eager to reach a settlement, our firm is prepared to go to court and has obtained numerous verdicts in court on behalf of our clients.

Have questions? We are ready to discuss your situation in a free consultation. Phone: (888) 213-8140

What to do if Your Business Has Been Interrupted by the Coronavirus Pandemic

One of the most important steps you can take may be to contact a licensed Silver Spring business interruption insurance claim lawyer. The attorneys at Goldberg Finnegan are available to validate your claim and are prepared to guide you through the insurance claims process.

Another important step is to gather relevant documents, such as your:

  • Insurance policy
  • Expenses you have accrued and bills you have been unable to pay, such as utility bills, tax payments and rent
  • Timeline of events related to your business closing
  • Records of your business’ revenue before you had to close
  • Bank statements
  • Inventory reports
  • Invoices and purchase orders
  • General ledger accounts to show extra expenses you have taken on
  • Budgets and projections done before or during the shutdown
  • Monthly profit and loss statements

This information can help our attorneys validate your claim and determine how much compensation you may be owed under the terms of your policy.

Your policy likely has a deadline for filing claims, so it is important to contact a lawyer right away to get the process started. Your lawyer can also help ensure you comply with your obligations under the terms of your policy. Failing to fulfill your obligations could result in your claim being denied.

Call Our Silver Spring Business Interruption Claims Lawyers Today

We are ready to take your call 24/7 and can set up a free, no-obligation legal consultation with one of our experienced attorneys. There is no risk to you because we are not paid for providing legal representation unless we obtain compensation on your behalf.

We are here to answer your questions during this difficult time. We remain fully operational, committed to the safety of our community and meeting the needs of our clients.

In over 20 plus years, we have obtained more than $130 million in compensation on behalf of our clients in a variety of cases.

Give us a call today to find out how we may be able to assist you. (888) 213-8140

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