In the wake of the catastrophic coronavirus quarantine, we’ve all had to deal with drastic changes in our lives. For many, events outside of their control have resulted in the closure of their businesses. The COVID-19 pandemic has brought real hardship to many businesses throughout the Houston area, and the damages suffered due to a business interruption are not limited to the physical structure of your property.
Texas Business Interruption Claims
If you have found your own business has been interrupted due to closure caused by COVID-19, you have likely suffered a loss of revenue during the time your business has been unable to operate — not to mention the extra expenses incurred trying to get your business back as soon as possible. Not only are you losing a steady source of income, but your customer loyalty and critical, one-time opportunities have also been affected.
If your commercial property insurance company disputes, delays, or denies your claim, the resulting loss of revenue and other expenses could potentially be recovered through a business interruption claim.
Loss of Business Caused by COVID-19
Due to the coronavirus outbreak, there has been severe damage inflicted on both human lives and the economy at large. Except for businesses that are deemed “essential” by the government, general commerce has come to a startling halt. This means businesses could be faced with significant interruption losses that may be too much for business owners to recover from without necessary payment from their commercial insurance carriers. Depending on your policy’s specific exclusions and coverage extensions, you could qualify for financial relief from your insurance provider.
Civil Authority Coverage
Because of stay-at-home and shelter-in-place orders in response to the COVID-19, non-essential businesses across the country have had to close down. Business owners who limit or cease business operations in compliance with orders from local, state, or federal governments are acting in response to civil authority.
Many business owners may wonder if their commercial insurance policies will cover these types of closures. If your policy includes civil authority coverage, you may have a valid business interruption claim. The team of experienced Houston attorneys at West Loop Law and the Law Office of Nhan Nguyen, MD, JD, can help you determine if you have a case.
Virus Exclusion Clauses
Following the SARS outbreak in the early 2000s, many insurance companies added virus exclusions to their business insurance policies. Most, but not all, commercial insurance policies feature this exclusion. Because of this, many insurance providers are now denying COVID-related business interruption claims.
At the same time, many commercial policies also have endorsements meant to cover pandemics and similar events caused by communicable diseases, and some insurance policies don’t have any sort of provisions relating to pandemics at all. Our team of lawyers will review your commercial insurance policy to determine if you have a valid claim for business interruption due to the coronavirus outbreak.
Special Event Coverage
In an attempt to “flatten the curve” and prevent a rapid rise in severe COVID-19 cases, most large events and gathering have been postponed or canceled entirely — almost overnight. Those impacted include conventions, sporting events, concerts, and more.
Coverage for event cancellation often contain virus exclusion clauses, but not all commercial insurance policies are made the same. The wording of your policy dictates if your loss of business is or isn’t considered a covered loss.
If your policy includes a “leader property” endorsement, businesses with revenue primarily driven by nearby attractions or destinations that have been made to close — like amusement parks and stadiums — could qualify for compensation.
If your business has been harmed financially because of an event cancellation, it’s crucial that you review your policy to learn if you have appropriate coverage. The lawyers at West Loop Law and the Law Office of Nhan Nguyen, MD, JD, can help.
Pandemic & Communicable Disease Coverage
While many insurance policies contain exclusions preventing pandemic situations like the COVID-19 outbreak from triggering coverage, some actually provide specific coverage for pandemic-related business interruptions.
While some policies cover losses resulting from pandemics or communicable diseases, they may not apply in certain situations if your business was forced to close due to orders from civil authority. Understanding the full extent of your coverage requires a close reading of the terms of your policy and its exact verbiage.
Obtaining the Full Value of Your Business
Our team of lawyers works every day to build strong cases against commercial property insurance companies across Texas. Your business should not lose money due to low-ball estimates from your insurance provider after a major disaster like the COVID-19 pandemic.
We are very familiar with the tricks used by these insurance companies. We know that deciphering the language used in your policy can be daunting, just like the idea of suing a major corporate insurance company.
Common Obstacles of Business Interruption Claims
- An adjuster or other insurance representatives could give a number of reasons for denying or stalling your business interruption claim
- Your insurance company may hire its own accountants and consultants to understate the real value of your business interruption claim
- You may have incurred extra expenses to get your business up and running again, and your insurance provider could refuse to pay
- The insurance company and its adjusters may only agree to pay for part of your claim, not the full amount owed
- Dealing with insurance companies takes valuable time away from your ultimate goal of getting your business up and running or finding another way to recover financial stability
A business interruption attorney can help you navigate these potential roadblocks and let you get back on with what you know best — running your business. We don’t just take the insurance company’s estimate of your damages at face value. With years of experience in handling cases involving commercial property damage and business interruption insurance, we use quality investigators and insurance coverage experts in order to determine the fair value of your business interruption claim. In this way, we can construct the strongest possible case on your behalf.
Houston Business Interruption Insurance Lawyers
Businesses right here in Houston are feeling the pressure due to the coronavirus shutdown, with small businesses experiencing the worst of the financial crunch. According to the US Department of Labor, payrolls across the board have plunged by nearly 701,000, with the unemployment rate rising to 4.4%.
Business owners who are struggling due to the COVID-19 pandemic need the help of an experienced legal team. The qualified Houston lawyers at West Loop Law and the Law Office of Nhan Nguyen, MD, JD, understand that we are all going through a difficult time, and we want to do what we can to help our community. Contact us today for a free evaluation if your business has lost more than $250,000, you are currently facing bankruptcy, or you’re having difficulties negotiating with the insurance company. Contact us today at 713-840-7200 to discuss your case.
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