Business Interruption Insurance and COVID-19

Attention Florida Businesses!

You have been paying for Business Interruption (BI) insurance for many years and most likely have never had to submit a claim. Now your business is closed; shut down. “Sorry, We Are Closed.” You have bills to pay and employees to pay. Time to file your Business Interruption insurance claim. D’Orsa and Associates, LLC Public Adjusters are available to help you submit your claim and fight for you and your employees throughout the entire insurance claims process to help you fully recover from your losses. The insurance companies may take the position that Business Interruption coverage was not meant to cover governmental shut down due to the panic of the spread of the COVID-19. We expect the insurance companies may attempt to deny all Business Interruption claims. Do not just accept denial based on the virus or bacteria exclusion.

Insurance carriers will most likely argue that coverage applies only where there is physical loss or damage to property (like a fire) and that COVID-19 will not generate coverage. However, courts have reached different conclusions with respect to what the policy terms “physical loss or damage” implies. Courts have observed that the physical loss or damage requirement is achieved when a property becomes uninhabitable or unsuitable for use. In addition, courts have found direct physical loss due to noxious odors, mold, gas leaks do trigger Business Interruption coverage.

Although there is no caselaw yet determining whether a virus or pandemic constitutes direct physical loss, one might argue that even if there has not been noticeable change to the insured property, the presence of a life threatening virus is sufficient to cause physical damage to the property. Thus, trigger coverage for Business Interruption losses under the policy.

Additionally, some property insurance policies provide Business Interruption coverage where lost business income is the result of governmental orders that impact the operation of a business and prohibit access to the insured property. Review of the policy terms is critical.

Jurisdictions across Florida, as well as many other states, have issued Civil Authority finding that COVID-19 has the propensity to attach to surfaces for prolonged periods of time and physically cause property damage. Along with the policy, the order of civil authority in question must be carefully analyzed.

Realizing the escalating opposition on these issues, lawmakers are voicing concerns about insurers averting coverage for Business Interruption losses. Members of the United States of Representatives implored insurance trade groups that their members should acknowledge financial losses due to COVID-19 as part of their policyholder’s Business Interruption coverage.

Depending on the type of business, there may be coverage which covers loss due to the inability of a supplier to get materials to the insured business.

D’Orsa and Associates, LLC Public Adjusters handle Business Interruption claims. We will review your policy to determine what type of Business Interruption coverage exists and/or if there is coverage for an interruption based on civil authority or other area of the policy. D’Orsa and Associates, LLC Public Adjusters will proceed with the coverage your policy dictates and represent you and your business throughout entire Business Interruption insurance claims process.

Contact Us for Help with Your Business Interruption Insurance Claims at (877) 742-3578 - (877) PI ADJUSTER.

Send your policy declarations pages and entire policy to us at adjuster@dorsaassociates.com for a FREE CONSULTATION!