What Can I Do If My Coronavirus-Related Business Interruption Claim Was Wrongfully Denied?

When you pay your business insurance premium, you expect your losses to be covered if you experience a business interruption. Insurance companies have a duty to honor their policy terms, and when they fail to do so by denying a claim that should not be denied, insureds have options to pursue compensation for their claims.

Many New York business owners have experienced business interruptions and financial losses due to the COVID-19 pandemic. Many of them have called their insurance companies only to be informed that their policy does not cover business interruption related to the coronavirus. Attorneys at Sullivan Papain Block McManus Coffinas & Cannavo, P.C. recommend filing a business interruption claim even if your insurance company tells you that you are not covered. This will preserve your right to challenge your insurance company’s denial.

Understanding Why They Denied Your Claim

If your insurance company denied your business interruption claim, you should have received a letter explaining why your claim was denied. There are several common reasons that insurance companies deny business interruption claims related to COVID-19:

• You do not have business interruption coverage. Not all insurance policies provide business interruption coverage. It is important to know what your policy entails regarding such coverage. 

• Your business interruption coverage excludes losses for business interruptions related to viruses and widespread diseases. In this case, insurance companies are denying claims stating that coronavirus-related losses are excluded from coverage.

• Your business did not experience physical damage. Some insurers deny claims arguing that their policy only covers business interruptions for insureds that experience property damage, physical loss, or a physical event.

• Coronavirus is not listed as an event that triggers business interruption coverage. Some policies state that you will be covered for business interruption losses for specifically described events, such as fire, wind, theft and natural disasters. Some insurance companies are denying claims because diseases and pandemics are not described in the policy as covered events.

Disputing Your Claim

Legal battles are brewing across the state of New York because many business interruption claims are being denied for the aforementioned reasons. Many of these claims are being wrongfully denied for invalid reasons. As a result, business owners and their employees are suffering. You should not take your insurance company’s denial as the final authority on whether you are eligible for coverage.

Our attorneys are representing business owners in disputes against their insurance companies for wrongfully denying their COVID-19 related business interruption claims. Insurance companies are in the business of making money by denying or paying out as little as possible for their insured’s claims. The attorneys at Sullivan Papain Block McManus Coffinas & Cannavo P.C. believe that insurance companies have an obligation to honor their policies and provide coverage to insureds who deserve to be compensated for their losses.

Making Sure You Are Fully Compensated with Help from New York Insurance Claim Attorneys

Even when insurance companies agree that you have experienced a covered loss, they will frequently offer you an amount that does not fully or fairly compensate you for your business damages. It is important to review your policy and know exactly which business interruption losses you are entitled to recover. If your business interruption claim was denied, insurance claim attorneys can help. They will review your policy and denial letter, negotiate with your insurance company, and take all necessary steps to dispute your denial and advocate for your full financial recovery. Contact the business interruption attorneys at Sullivan Papain Block McManus Coffinas & Cannavo P.C. today.