Has Your Business Been Impacted by Covid-19?

Insurance is supposed to provide a guarantee of compensation for specified loss in return for payment of a premium. Business interruption coverage is usually purchased as part of a commercial property policy, and business owners have been making claims due to the COVID-19 pandemic that has emptied the streets and closed the doors of countless businesses. When a policyholder suffers direct physical loss or damage to covered property, they should be able to recover, at the very least, payroll and operating expenses. Owen, Patterson & Owen is assisting business owners with business interruption coverage and losses in excess of $100,000 get the money they are entitled to under their policies.
Insurers dispute whether a disease outbreak like coronavirus constitutes “physical loss” or “damage,” even if the policy is an “all risk” policy which covers all risks unless specifically excluded. Additionally, when the policy contains an exclusion for damage caused by a virus, it is a difficult hurdle to overcome without a lawyer on your side. Defense attorneys argue that insurers are not liable for business interruptions caused by closures ordered as a precaution to prevent the spread of disease or contamination.
At OPO, we believe coverage is triggered when the property or an adjoining property is physically damaged. Isn’t the property outside your business physically damaged when even just one person infected with coronavirus coughs into the air? The answer is yes. When losses occur due to suspension of operations by a supplier, OPO may argue that coverage is triggered. Civil or military authority coverage will apply, which insures losses when the government restricts access to property if that order is the “direct result” of physical loss of the same type insured by the policy. Some policies cover physical loss caused by environmental contamination and analogous incidents, rendering property unfit for normal use.
Your first step is to reach out to your broker to obtain an electronic and certified copy of your full and complete policy. Don’t try to go it alone. OPO will make sure the process is completed correctly. Don’t forego the opportunity to make a claim by missing something important in the fine print of your policy. Please contact us at (661) 799-3899 or at www.opolaw.com. We are fully operational and available to help.