Business Interruption

Has Your Business Interruption Claim Been Denied?

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Today, more than ever, business interruption claims are playing a crucial role in helping small businesses stay afloat. The pandemic  has nearly shut down the economy during these unprecedented times. Insurance companies are denying business interruptions claims that are based on civil-authority-ordered closures related to the coronavirus.

In some cases, you may have to pursue legal action in order to get your insurance provider to pay out on your policy. Contact Fibich, Leebron, Copeland & Briggs, today at (713) 804-6121 to schedule an initial consultation and explore your legal options.

In operating a business, there are many unforeseen events that may cause you to have to temporarily close your doors or suffer a sudden loss of revenue. To help you during these temporary shutdowns, your insurance policy may include business interruption coverage, also known as a business income policy.

Business interruption coverage is designed to cover day-to-day expenses, lost revenue, rent, and other operating expenses. Too often, insurance companies act in bad faith and deny claims under these policies. You need a skilled litigator who will hold these companies accountable.

Business interruption claims may be a matter of survival for you and your company’s livelihood. At Fibich, Leebron, Copeland & Briggs, we understand that this may be a difficult time for you, and we are here to help. Our experienced legal team will fight hard to protect your business interests and get you the money you need to keep your business running.

FAQ’S About Your Business Interruption Claim

What is Business Interruption insurance and why is it important?
Business Interruption insurance or “BI coverage” is an important part of your commercial property insurance that is designed to protect you when an event causes damage or loss to your business income. Many businesses are forced to close their doors when a sudden event occurs because there is no income to pay continuing expenses. BI coverage assures that a steady stream of income continues during the time of your business loss.
What does BI coverage pay for?
BI coverage is designed to protect the earnings your business would have enjoyed had there been no interruption of business. It is the net income (defined as net profit or loss before taxes) that would have been earned plus continuing normal operating expenses, including payroll.
How long will the BI coverage continue to pay my business income and expenses?
Generally, BI coverage will begin to pay your business income shortly after your loss up until the restoration or replacement of your business property or when operations begin at your new location. The specific terms in your policy, including the policy limits amount, may determine how long you will receive your business income.
Is BI coverage expensive?
BI coverage is not expensive. Many businesses pay significant insurance premiums to fully insure their building structure and property contents, while the BI coverage is a small fraction of the overall commercial property insurance bill.
What are some of the important issues concerning my Business Interruption coverage and claims?
There are many issues that affect a potential BI claim, such as:

  • Did my insurance agent/broker provide BI coverage in my Commercial Property policy? If not, why not?
  • Did my agent/broker procure adequate amounts of coverage for my business losses? If not, why not?
  • What types of coverage do I have in my BI policy and how and when do they apply? Do I have:
    1. Civil Authority coverage in the event that access to my property is impaired due to a government order?
    2. Extra Expense coverage should I incur additional expenses incurred during the loss?
    3. Extended Period of Indemnity, so that I am able to collect benefits after I open my business, but am not yet up to my previous income amounts?
    4. Contingent BI coverage based on damages to my off-site suppliers and vendors?
    5. Ingress/Egress coverage when access to property is impaired?
    6. Rental value and rental income when my rent collections have dropped as a result of the loss?
    7. Other applicable BI coverages to my loss?
Are Business Interruption insurance claims being filed as a result of the pandemic and the closing of businesses?
Yes. Because businesses have found themselves suddenly without income and the inability to make payroll and expenses, many are looking to their BI coverage to provide income to save their businesses.
Are insurance companies paying the BI coverage benefits for pandemic business claims?
Unfortunately, many insurance companies are not paying and are claiming that these particular claims are not covered by the BI policy.
Are some states considering legislation so that the Business Interruption polices will cover pandemic claims?
Yes. A number of state legislatures have filed bills that would require BI policies to include coverage for the virus transmission/pandemic. Each state that is considering this legislation has specific requirements concerning proposed coverage, so check with Fibich Leebron to see if your state is considering such legislation.
What should I do if my insurance company will not pay my pandemic claim? Does your firm handle these cases?
You should immediately call the trial lawyers at Fibich, Leebron, Copeland & Briggs. We have experience handling these claims. Long before the current virus outbreak, our trial lawyers have sued insurance companies, agents, and brokers so that full damages under the law may be recovered.
Do I have to pay hourly attorney fees to hire your firm in my BI lawsuit?
No. The lawyers at Fibich Leebron will represent you on a contingent basis. No attorney fees will be charged unless we recover damages for you and your business.
What damages might I be entitled to in my BI coverage lawsuit?
You may be entitled to full policy limits of your policy limits as well as extra-contractual damages, including attorney fees.

Don’t let your insurance company push you around. Call Fibich, Leebron, Copeland & Briggs, today (713) 804-6121

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