9 Jun 2020

By THE702FIRM Injury Attorneys

In Business Interruption

Business interruption insurance is an important lifeline for businesses when disaster strikes. The COVID-19 crisis has brought questions about coverage to light in recent months. The pandemic has both temporarily and permanently shut down many companies, both in Las Vegas and nationwide.

Unfortunately, the fine print in many business interruption policies states that viruses, bacterium, or other microorganisms that cause physical distress, disease, or illness are not covered perils. This is largely due to the fact that the physical property of the business is not destroyed or damaged. As a result, many businesses being denied the coverage they need to stay afloat during these difficult times.

Insurers argue that because COVID closures did not result in damage to property, businesses are not entitled to compensation for their losses. However, business owners are now challenging those denials through class-action lawsuits.

Have you been struggling to obtain business interruption coverage due to COVID-19? Talk to the attorneys at THE702FIRM Injury Attorneys today to discover your legal options.

For a free consultation, call or contact a Las Vegas business interruption lawyer today.

What is Business Interruption Insurance?

Business interruption insurance provides coverage to businesses when they lose income due to a circumstance beyond their control. Covered perils typically include theft, wind, falling objects, lightning, and other natural disasters. In addition to coverage for lost income, business interruption insurance also provides coverage for other burdens, such as tax payments, loan or rent payments, and relocation costs if the perils require businesses to move to a temporary location.

Some policies also cover governmental interventions that require businesses to shut down. These policyholders may have an easier time recouping COVID-19 losses, but the rules are in flux right now, so there are no guarantees.

About COVID-19 Business Interruption Litigation

A class-action lawsuit filed by three restaurants in New Jersey accuses insurance companies of acting in bad faith and not paying out appropriate business interruption coverage for coronavirus losses. The lawsuit does not deny that there is an exclusion in most policies for viruses and other microorganisms that may cause disease. Instead, the business owners claim that it was not the virus that shut down their businesses, but rather the government’s order to shut down all non-essential businesses and for residents to shelter in place.

It remains to be seen what will happen with the class-action case, but the attorneys at THE702FIRM Injury Attorneys are watching developments closely. You can count on us to report pertinent decisions and COVID-related legal news here, so keep checking back.

Denied Coverage? Contact a Las Vegas Business Interruption Insurance Lawyer

Was your business shuttered as a result of Las Vegas lockdowns? Even if your insurer denies it, you could be entitled to business interruption coverage to help with your financial burdens. Let an experienced lawyer at THE702FIRM Injury Lawyers review your policy today. Our goal is to help you maximize your compensation from all available sources.

Ready to get started? Call or contact us online immediately.