As a result of the Covid-19 Pandemic and subsequent business closures across the country, many business owners and companies are looking to their property insurance policies for relief. Insurance companies are telling them that the losses are not covered.

Business interruption insurance typically helps replace lost revenue, taxes, payroll, relocations costs, loan payments and lease payments when a business is affected by a covered loss. According to the Insurance Information Institute, approximately one-third of U.S. small businesses carry interruption coverage. https://money.usnews.com/money/personal-finance/saving-and-budgeting/articles/what-is-business-interruption-insurance.

Multiple lawsuits have been filed around the country in response to these claim denials. https://www.sandiegouniontribune.com/business/story/2020-04-05/companies-thought-they-were-covered-for-business-interruption-insurance-not-really

Some state legislators and lawmakers have sought to ease the burden on small businesses and ensure that they are getting the coverage they paid for. Here in California, 33 Congressional Delegation Members have sent a letter to the California Insurance Commissioner demanding that they “exercise all authority to ensure the insurance companies comply with their business interruption policies. During this crisis, we must do everything possible to mitigate the devastating impact on small businesses due to the coronavirus pandemic.” https://www.natlawreview.com/article/33-members-california-congressional-delegation-ask-ca-insurance-commissioner-to. According to the California Insurance Commissioner Ricardo Lara, the Insurance Commission is “currently working with the insurance industry and business groups to find creative solutions during this unprecedented crisis to make sure our businesses survive, and we need this data to define the size of the problem.”

If you have experienced a business interruption due to Covid19, you may be entitled to assistance.