How Can Restaurant Owners File Business Interruption Claims?
November 30, 2020 in Business Interruption
Until the coronavirus pandemic struck, the hospitality industry was thriving in the greater New York area. This widespread disease and its impact on our city and the country were unexpected and unfathomable before it struck. Unfortunately, restaurants have been severely impacted and they are struggling to stay afloat. Many restaurant owners secured funds under the paycheck protection program and other federal loans, but these funds only cover some losses for a limited time.
If your insurance policy provides business interruption coverage, you may have a claim for the damages that your restaurant has suffered due to the impact of coronavirus. Our attorneys are regularly taking calls from restaurant owners who have questions and need help filing their business interruption claims. Many of our clients are being told by their insurance companies that they are not eligible for business interruption compensation and, in many cases, we disagree.
Filing Your Business Interruption Claim
If you own a restaurant in New York, you have undoubtedly sustained significant business losses. To file a business interruption claim, you or your attorney will contact your insurance company and fill out their standard claim form. If your insurance company tells you that your business interruption losses are not covered under your policy, and your claim will be denied, you can file a claim anyway, and it may be important to do so.
Most insurance policy terms provide a timeframe in which claims must be filed. If you miss the deadline, you risk losing your right to compensation for your business interruption damages. Timely filing a claim, even when you know your insurer plans to deny it, will preserve your right to challenge your denial and pursue coverage. If coverage is denied, you will receive a letter from your insurance company that states the reasons for denial.
Disputing Your Claim Denial
Business interruption claims are denied for a number of reasons, such as COVID-19 not being an event covered by your policy, your restaurant did not suffer any physical damage or losses, or your policy excludes losses due to widespread disease or viruses. If your claim is wrongly denied due to bad faith, an error, misinterpretation of your policy, or any other reason, you can dispute your insurance denial to recover the compensation that you deserve under the terms of your policy.
The Value Of Your Claim
Even if your insurance company does not deny your claim, they may offer you compensation that does not cover all of your losses. Insurance companies want to keep their claim values low to pay their insureds as little as possible. The terms of your insurance policy set forth the losses that you are entitled to recover, and it is critical to make sure that all of your damages are properly calculated and included in their offer.
Many factors go into calculating losses under a business interruption claim, especially for restaurants. It may be necessary to hire a financial expert to help with those calculations. An insurance claims attorney can help you find the true value of your damages to make sure that your insurance company is offering you a fair amount of compensation under your policy terms. An attorney can also help with reviewing your policy, filing your claim, and disputing a claim denial. To contact an attorney at Sullivan Papain Block McManus Coffinas & Cannavo P.C. about filing a claim, call (212)-732-9000 or reach out to us here: https://www.triallaw1.com/contact/.