While it may be difficult to imagine a policy that does not provide coverage for an interruption in revenue caused by a pandemic or the like, many policies have exclusions for the same.
Under the current circumstances, business interruption is an on-going reality. Until state and local governments allow businesses to reopen, loss of business and revenue will continue to grow. At the same time, many expenses continue to accrue and must be paid.
The issue as it relates to business interruption insurance, though, is whether or not you have a policy of insurance and whether or not there is coverage available to you. The question invariably comes down to the precise language of your policy of insurance. While it may be difficult to imagine a policy that does not provide coverage for an interruption in revenue caused by a pandemic or the like, many policies have exclusions for the same. Of course, under the applicable law, the language of the policy will be construed in favor of the insured (or policyholder) and against the insurer (or insurance company). A careful review of your policies is a prerequisite to a considered approach to making a claim for lost revenue.
Assuming there is coverage, the next issue will be to determine what losses in business and revenue are recoverable under the policy. While the insured will certainly want to compare the revenue/profit he was making before the catastrophic event with his business/profit revenue after the event, the insurer may argue that this is not the proper analysis. Instead, the insurer may estimate the business the insured would have done had the state and local governments not ordered a shutdown in order to use this figure as the more appropriate measure of the claim. This will, no doubt, be a matter of contention and a strong negotiation will be a must.
Daniel J. Voelker, who is both an experienced litigator and a C.P.A., can help guide you through both phases of the analysis referenced above.
Do you need help with business interruption insurance?
Call Dan Voelker at (312) 870-5430.
Tags Business Interruption Insurance, coronavirus, covid-19, insurance companies, loss of business, loss of revenue, pandemic, policyholder, shutdown