Business Interruption Claims

Coverage Provided by Business Interruption Insurance

Your business interruption insurance policy is likely to be noticeably different from that of the business next door. The coverage they are afforded might not be applicable in your circumstance, and vice versa. What is important is to not assume you have no options because your insurance provider said so. Instead, let our business interruption claim attorneys review your policy and let you know what you should be able to expect in terms of coverage provided after the coronavirus pandemic halted your business operations.

A typical business interruption insurance policy will provide for:

• Lost income: Some policies will give a percentage of the income loss you have experienced due to an unforeseeable closure. An average income amount might be calculated using financial records from previous months or a year to determine how much you should be given. Or your policy might have a predetermined flat amount of covered income.
• Rent: One of the largest costs of any business is the monthly cost of rent. Business interruption insurance policies will typically provide full coverage for rent expenses for several months, hopefully giving the business a chance to rapidly resume business as normal when the interruption ends without accruing a massive debt to a landlord.
• Employee paychecks: Your company’s business interruption insurance policy might even offer financial safety nets to your employees by providing you the means to keep paying a portion of their paychecks while your business is closed. Once again, this coverage can help you resume business quickly by not needing to rehire employees who left during the lapse due to a lack of pay.
• Temporary changes: Depending on the business you run, it might be possible to continue some operations and make some sales by making significant changes to your operations, like switching from a storefront to an online retailer. Expenses related to these temporary changes, such as setting up a home office or renting a storage warehouse for online products, might be covered in your insurance policy.

Businesses Heavily Impacted by Coronavirus Closures

The coronavirus pandemic has dramatically slowed the economy, impacting businesses in all industries and of all sizes. Katz Kantor Stonestreet & Buckner, PLLC proudly offers our representation to every business in Princeton, Charleston and Bluefield that needs help with their business interruption insurance claim. Whether you are a small mom-and-pop shop or an arm of a nationally recognized brand, we can use our legal experience and histories with insurance litigation to support, guide, and represent you during this difficult time.

Let us know if you run a business in these industries and need our help:

• Restaurants and bars: The food and hospitality industries have been devastated by the coronavirus. One of America’s most popular pastimes is going out to eat or drink with family and friends, but no one can do that for the time being. Restaurants can offer takeout, but it is difficult to make a sale when people need to save every penny they can. Bars are in an even worse position since they cannot sell alcohol to anyone outside of the establishment.
• Retailers: Switching to online sales only has helped some major retailers keep income flowing, but it is not an option for many. Only retailers deemed “essential” are permitted to keep their doors open, and even then, many precautions need to be taken to limit customer and employee exposure.
• Commercial landlords: Business interruption insurance can also be used by commercial landlords who own the properties rented by other businesses. As individual tenants close up their shops and can no longer make rental payments, the financial impact trickles upward, leaving landlords in the same difficult situation.
• Churches: Many states have deemed religious gatherings as nonessential, instructing churches to close their doors to the public. Churches often rely on charitable donations collected weekly from worshippers to stay in operation, though. Our attorneys are currently working on a business interruption insurance claim for a church in West Virginia, so we would be honored to hear from your church, too.

Reliable Legal Counsel When Your Business is in Jeopardy

Insurance companies may feel tempted to deny business interruption claims without any proper investigation into a claim because there are so many being filed due to the coronavirus. It is the same tactic they use when thousands of policyholders need to file at once after a natural disaster, like a tornado or hurricane. You could have an entirely legitimate claim to financial coverage, but your insurer might still deny your claim.

To prepare your business interruption claim for anything your insurance provider may do, work closely with Katz Kantor Stonestreet & Buckner, PLLC in Princeton. Our firm was established in 1931 on the simple premise that people deserve honest, dependable legal representation during difficult times. Today, we still hold onto principle and do our absolute best for each and every client.