Philadelphia Business Interruption & Small Business Claims Lawyer
Dedicated Business Interruption/Small Business Claims Lawyers Help Business Owners Throughout Philadelphia
Building a successful business is an incredibly rewarding experience. That is why it can be incredibly difficult to have your hard work jeopardized by an interruption in operations, such as the current COVID-19 pandemic, that leaves your business unable to generate revenues and responsible for significant expenses to restart or resume operations. Fortunately, you may have taken steps to protect your business against the risk of an interruption in operations through business interruption insurance.
Even though your company may have business interruption insurance, it is important to understand what that insurance covers. Most policies are limited in the types of interruption they will cover or the expenses or losses that the policy will reimburse your business for. This can make filing a business interruption/small business claim especially nerve-wracking when you may be relying on coverage to help your business weather the storm of an interruption. During the present pandemic, many small and medium businesses are finding that their business interruption insurance carriers are summarily denying claims for coverage, regardless of whether or not a particular policy specifically mentions pandemics or not. As a result, the economic disruptions triggered by the coronavirus pandemic has led to a sharp rise in litigation against business interruption insurance companies.
If you find your business needing to file a business interruption/small business claim, or if you are having a dispute over the compensation you’ve received from your insurer, or if your business has filed a claim that has been denied by the insurance company, you should contact a Philadelphia business interruption/small business claim attorney at Marrone Law Firm. Our firm is ready to help you understand your rights and options and to get to work fighting on your and your business’s behalf to help you secure the insurance coverage you need and deserve.
What Is Business Interruption Coverage?
Business interruption coverage is usually a part of a business’s general or commercial liability policy that provides protection against losses in revenue caused by a business interruption. Business interruption is triggered when a business suffers an interruption in operations due to physical damage. Coverage is provided for the period from the start of the interruption in operations through the time that a business would reasonably be able to restart operations. Business interruption coverage usually is not available when an interruption is caused by:
- Evacuations not required by government order
- Short-term shutdowns (usually 72 hours or less)
- Business losses not caused by physical damage to insured property
Business interruption will provide coverage for the business’s lost income caused by the interruption in operations. Coverage may also be available, depending on the terms of a business’s policy, for additional expenses such as:
- Ongoing operating expenses, such as rent, utilities, property taxes, or wages
- Costs incurred to move to and from a temporary location
- Expenses incurred to restart and resume normal business operations
A policy’s definition of “physical damage” that triggers coverage can vary from policy to policy. Some policies provide coverage when a business suffers an interruption in operations due to damage to supplies or supplier facilities. Policies may also include contamination by disease or toxic substances in the definition of property damage. It may also be possible to negotiate special endorsements to a business interruption policy to remove the property damage requirement, thereby providing coverage whenever an insured business suffers any interruption in operations.
With the current COVID-19 pandemic, many businesses have been reviewing their business interruption policies to determine how pandemic-related shutdowns are covered. Some policies may expressly exclude pandemics from the covered events, while other policies are completely silent on the topic. However, even where policies don’t expressly mention pandemics, insurance companies have been summarily denying COVID-19-related claims as outside the scope of coverage.