Baltimore, like many other areas, has been drastically impacted by the COVID-19 pandemic. Due to the strict social-distancing regulations in place, many business owners are unable to interact with customers to ensure their business stays in operation. Due to this, many companies have elected to file for business interruption insurance. Unfortunately, insurance companies are denying a large number of business interruption claims. If your insurance company denied your business interruption claim, you should contact an experienced Baltimore COVID-19 business interruption claim attorney.
The Law Offices of Randolph Rice are dedicated to providing you with the unique legal representation your business needs during these difficult times. Our firm recognizes how the COVID-19 pandemic has affected business owners, and we are here for you in your time of need. To schedule a free legal consultation to discuss your claim, contact the Law Offices of Randolph Rice at (410) 694-7291. You can also contact the firm online.
Conditions for a Business Interruption Claim in Baltimore, MD
The coronavirus pandemic has changed our way of life for the foreseeable future. For residents across Maryland and the United States, COVID-19 has claimed loved ones and required the issuing of strict social distancing orders to avoid the increased spread of the virus.
For business owners, the coronavirus has led to a significant loss of income that may make it difficult for a company to survive the loss of business caused by the epidemic. Without a way to adapt to the new climate of conducting business, some industries have been forced into filing for business interruption insurance.
A business owner can file business interruption insurance when their business is disrupted due to a “covered peril” that is acknowledged in their insurance policy. An example of a covered peril can be structural damage to a business structure that was caused by flooding. A business owner should read through the provisions of their insurance policy to determine what events will be considered as a covered peril. There are a number of other covered perils that are common within the insurance industry:
- Damage to merchandise
This is not an exhaustive list. After satisfying the condition of having a loss of business income due to a covered peril, a business owner can receive reimbursement for their losses.
It is important to note that the amount of compensation provided by an insurance company will vary depending on the policy limits and the “period of restoration.” The policy limits will have been selected by the business owner when they applied for business interruption insurance. Once the policy limit has been met, a company will have to seek other forms of compensation to help resume operations. If you are concerned about selecting a policy limit, you should consider the following factors:
- How protected your business is from natural disasters and similar events
- The safety protocols in place to prevent serious damage (e.g., sprinkler system)
- Whether you own or rent the property where your business is conducted
The period of restoration is how long an insurance company will provide a business owner with compensation due to a disruption of their business. It is a standard insurance industry practice for the period of restoration to last up to a year or for a reasonable amount of time needed by a company to reopen their business.
To learn more about what to do if your business interruption claim is denied, you should continue reading and speak with an experienced Baltimore COVID-19 business interruption insurance lawyer.
Why Insurance Companies are Denying Business Interruption Claims
Non-essential business owners across the State of Maryland have been complying with the government shutdown order for weeks. As a result, many companies have lost revenue every day they are unable to conduct business regularly. With the number of business owners that have been forced to shut down indefinitely, insurance companies are worried that business interruption claims may cripple the insurance industry.
In Maryland, the insurance industry is a nearly 30 billion dollar industry. However, even with this massive amount of revenue generated by the insurance industry, many business owners have been denied the possibility of receiving business income reimbursement through an interruption claim. One common reason for the denials of business interruption insurance payments is that some insurance companies are worried about the possibility of being insolvent after paying too many policyholders.
Another important factor considered is that the insurance industry does not consider a pandemic as a valid cause for business interruption coverage. This is likely because business interruption insurance is often awarded for physical loss or direct damage to a business. As mentioned, many business interruption claims payout for tangible damage caused by a covered peril.
Due to this loophole, many insurance companies are using complex provisions to deny business owners the compensation they deserve in order for their business to survive the pandemic.
If your business interruption insurance was denied, you should speak with an experienced attorney about the claim as soon as possible. Our firm can help you weigh your legal options and determine the appropriate way to manage your business interruption claim.
Our Experienced Baltimore Business Interruption Claim Attorneys Can Help with Your COVID-19 Claim
If your insurance company denied your business interruption insurance claim, contact an experienced Baltimore coronavirus business interruption lawyer. Committed business lawyer Randolph Rice has fought for business owners throughout Maryland for years, and he would be proud to fight for you. To schedule a free legal consultation to discuss your claim, contact the Law Offices of Randolph