As coronavirus wreaks havoc across the country and threatens our health, it is also causing severe damage to businesses. Many companies have been forced to shut their doors. Others have significantly cut back their operations because of mandatory stay-at-home orders. The coronavirus outbreak has not only reduced customer spending, but it has affected workforce availability and supply chains for products and services.
The negative economic impacts on businesses due to the coronavirus are already severe. As the virus continues to affect communities, the economic fallout may become nothing short of catastrophic.
REQUEST CONSULTATIONMany businesses have begun looking to their commercial insurance providers for help. If you are a business owner, you probably did the smart thing and purchased commercial property insurance. This insurance protects companies against property damage from fires, storms, explosions, and other things. Commercial insurance policies often include business interruption coverage, which pays back policyholders for lost profits resulting from damage.
Unfortunately, some insurers are denying coverage for losses caused by the COVID-19 coronavirus. If you have questions about your business insurance and whether you are covered, we can help. Call our experienced business loss attorneys at (713) 973-8888. We provide a free consultation.
For more than 35 years, the respected Houston legal firm of Terry Bryant Accident & Injury Law has successfully stood up for clients against big insurance companies. Our team of experienced attorneys, led by former judge Terry Bryant, understands the insurance system. We are not afraid to take on the corporate lawyers employed by insurance companies. Our law firm is here for your business during this very difficult coronavirus pandemic. Reach out to us at (713) 973-8888 or toll-free 1 (800) 444-5000 to learn how we can help you.
Another avenue for recovery may be insurance brokers who fail to do their jobs properly. If your broker did not obtain the correct insurance coverage you requested for your business, the broker might be liable. Or if they didn’t explain gaps that the coverage contained, it could add up to a case of broker liability.
Reputable insurance brokers almost certainly carry errors and omissions insurance to protect themselves in circumstances where they make careless mistakes. These policies are responsible for paying claims of broker negligence in handling clients’ insurance needs. If you believe your insurance broker may have been negligent when drafting your policy, we can advise you more about broker liability in your case.
Insurance companies that deny coverage for losses in business revenue due to the coronavirus are facing potential lawsuits throughout the country. This includes Texas and the Houston area. Legal claims have been made for breach of contract, unfair settlement practices, and other bad faith actions. If you feel that your financial losses due to coronavirus should be covered under your business interruption policy, we will review the facts of your case. If it looks like you have a legal claim, we will take on the insurer who is denying your coverage. Call us for a free consultation at (713) 973-8888 or toll-free 1 (800) 444-5000.
An insurance policy that may provide the clearest path to recovery for businesses that have them is the all-risk policy. This policy covers a business for any risk not expressly excluded within the language of the policy. For example, if an all-risk policy does not explicitly state that flood coverage is not included, then in the case of a flood, a business should be covered by that policy. The same may hold true for viruses. If a policy does not say pandemics like coronavirus are not covered, the business owner may have a legal claim if they are denied coverage for a loss of income due to the coronavirus.
Most commercial insurance policies require physical damage to property for business interruption coverage to kick in. For example, in Houston, we're familiar with visible damage to property caused by hurricanes and tornadoes. This damage is easy to see. Roofs are ripped off. Walls are blown over. Buildings are flooded.
But coronavirus doesn’t do any of those things. The virus does not cause dramatic physical damage to buildings and their contents. It may not even be present in a company’s building. Yet it is still causing serious damage. Even if it were present, insurance companies and their teams of lawyers would probably argue that the presence of a virus doesn’t add up to physical damage. After all, they might say, it can be easily wiped off with a disinfectant. However, as you and other business owners are finding out, coronavirus and its economic effects are not easily wiped away.
Success in obtaining payment for your lost profits can greatly depend on the exact language in your insurance contract. It will also rely on the specific facts related to your claim. There are, though, some common elements related to these policies that will almost certainly result in legal claims from affected businesses.
Our business loss attorneys will carefully examine your case to help you understand your options. Contact us today to schedule a consultation by calling (713) 973-8888.
Some business owners have filed claims related to the loss of income caused by the coronavirus pandemic, yet those claims aren’t being paid. Coronavirus (COVID-19) business interruption claim denial is fast becoming a trend among commercial insurers. Many companies in Texas and throughout the country have already been told that their insurance doesn’t cover losses from coronavirus. Lawsuits related to these claim denials will undoubtedly continue to rise. If your claim has been denied, we can review your policy to see if you may have a legal case.
Some insurance contracts contain language that expressly excludes coverage for losses related to viruses and other contagious diseases. Other policies contain coverage that provides reimbursement for business interruptions caused by local, state, or federal governments ordering business closures.
Exclusions for virus-related losses are less common in the restaurant and hospitality industries then they are in other businesses. For this reason, restaurants and other hospitality company owners should carefully read their insurance policies for language related to contagious diseases.
Restaurants, bars, event venues, and other hospitality companies that are ordered to reduce service or close because of the virus may have recourse. It is essential to check if your insurance covers interruptions due to orders from civil authorities. The specific language in these policies varies. Sometimes even with ordered closures from government entities, physical damage to property must still have occurred. On the other hand, some government orders during this coronavirus pandemic have specifically said that they are made in response to physical damage in the form of the presence of COVID-19.
There is no doubt that insurance policies are complicated and difficult to understand. Even small nuances in language can potentially make the difference in whether a business is covered for its losses due to coronavirus. Our lawyers at Houston’s Terry Bryant Accident & Injury Law have extensive knowledge of insurance law. We have successfully handled many insurance disputes for clients. Call us at 713-973-8888 for a free case review.
“Business interruption claim denied” are not words you want to hear when your company is financially struggling due to coronavirus. You should know that these words do not mark the end of the road in possibly gaining coverage. We are on your side during this frightening time in our country and around the world.
The experienced trial lawyers at Terry Bryant Law are here to assist you. We have successfully handled tedious disputes with insurers for decades. We will review the contents of your policy to help you determine if you have a viable insurance claim for interruption to your business from COVID-19. If you have been denied your business loss claim, we will fight for you. Call us at 713-973-8888 or toll-free 1 (800) 444-5000 for a free consultation.
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