If your business is taking losses due to government shutdown orders due to COVID-19 pandemic. One of the lifelines to redeem those losses is business interruption insurance. If you’ve been considering that option, you may have become discouraged because many of the insurance companies deny claims related to Covid-19. However, some of the denials are justified because many standard policies may not provide cover for claims related to COVID-19. During such circumstances, it is significant for companies to comprehend the coverage provided under such insurance policies and if there is a chance to make a claim.
What is covered and what’s not?
Many insurance agencies give explanations that business interruption policies provide coverage when a policyholder endures a loss of income due to physical loss or damage to covered property. As per their interpretation, COVID-19 doesn’t fall under the physical loss. Agencies also highlight the fact that policies don’t cover loss of income due to market conditions, economic slowdown, or concerns regarding contamination. They claim that policies don’t provide coverage for government actions intended to confine the spread of COVID-19.
However, you might claim your losses, if your business interruption insurance policy includes Infectious Disease Coverage, as COVID-19’s impact may come under infectious disease coverage. And if your insurance policy does not include infectious disease coverage, then you have to state that your business premises have suffered physical damage from Covid-19.
How to Claim Your Covid-19 Business Interruption Losses?
The stress of paying bills and managing everyday activities in present economic conditions is overwhelming for many business owners. Only a few of them have time to pull together a detailed business interruption claim, and it becomes more daunting if you have never filed one before. To overcome this situation, we have determined some points that will help guide you in filing a business interruption claim:
Ready your Policy – Policy wordings are vital, so find your declaration sheet and policy details. Read your policy carefully to determine whether you have coverage for COVID-19; also pay particular attention to covered causes of loss, exclusions, and limitations.
File your claim – To claim your insurance, make a phone call to your insurance broker or agent, who will be able to file a claim for you? Don’t get discouraged if your insurance agent tells you that there is no coverage for COVID-19, and filing the claim is a waste of time. This is the insurance industry’s current strategy to discourage businesses from filing claims.
Claim Your Policy Timely – Many policies have strict deadlines; your claim may be denied if you fail to give timely notice, even if you are covered for COVID-19. So make sure you claim your policy in the given timeframes.
Keep Thorough Records – This is quite obvious, you must have to submit the evidence of losses that you bear due to COVID-19 pandemic. So, remember to aggregate and maintain the evidence of losses. Focus on gathering data like – payroll records, invoices, and utility bills.
Identify Income Losses – It is complex to estimate business income loss because it does not take place at a point in time. The correct loss calculation will help compensate for the lost income during the loss period.
Keep in Contact with Your Insurer – It is crucial to maintain consistent communication with your adjuster and provide the required information for your claim. A gap could lead to a huge delay or may deny your claim.
If you’ve tried all other options but still not getting any success, you may recruit a legal advisor who specializes in insurance matters to see whether you have a legitimate case, if he thinks you have a legitimate case that worth a claim, then provide him with all relevant documents and a copy of your insurance policy.
Now if you are seeking a Business Interruption Insurance Claims Advocates in Jacksonville, Florida, Miami, Orlando, or Tampa, consider hiring ClaimsPro USA. ClaimsPro USA has reputed advocates who have helped home and business owners to recover thousands of insurance dollars.
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