How your business insurance policy may be able to cover profit
losses How will you survive? In Florida, a state heavily dependent on tourism, we have seen significant hardship for hotels, restaurants, medical centers, entertainment centers and many other businesses.
Fortunately, the business insurance policy you are paying for may cover the financial shortfall associated with COVID-19.
Before reading any further, it is important to understand that insurance policies are generally of different types and that the discussion below is based on general policy language that may or may not be present in your policy.
Therefore, it is imperative that you consult with an attorney to thoroughly review your policy to determine what coverage may be available to you and your business.
Even if your policy includes an exclusion for pandemic-related losses, we may want to review your business interruption policy or business loss policy.
The case law relating to this area is fluid and ever-evolving. Thus, there is a possibility that your policy may actually cover financial losses related to coronavirus.
Several states are considering legislation mandating insurance carriers to cover COVID-19 business-related losses, even if an exclusion doesn't state otherwise.
It is therefore imperative that you act now and be consistent with the likelihood that your claim may be settled.
Business income coverage
provides financial compensation for the actual loss of business income sustained by you due to the necessary "suspension" of your "operations" during the1,2.
Direct physical loss or damage to property on your business premises Must be caused by causes that are described in the declarations and for which the business income limit of insurance is shown in the declarations. The loss or damage must be caused by or as a consequence of the covered cause of loss.
To clarify, obtain business income coverage To do so, 1) the "suspension" must be due to direct physical loss or damage to the property, and 2) the loss or damage must be caused by or resulting from a covered cause of loss
. cannot cause loss or damage, it has been determined that physical loss or damage is "any effect on property that prevents the property from being used for its intended purpose" which can include bacterial contamination.
For example , Motorist Mutual Insurance Co. v. Hardinger, 131 F. Ap. p'x 823, 827 (3d Cir. 2015), when considering infection of a home with E. coli bacteria, the court noted that "a real issue of fact [exists] whether the functionality of the property was nearly extinguished or destroyed, or whether the property was rendered unusable or uninhabitable."excess
Additionally, in Cooper v. Travelers Indem. Co., No. C-01-2400, 2002 WL 32775680, at *5 (ND Cal. Nov. 4, 2002), the court found that policyholders were required to deduct business income andexpense can claim for damages that result from contamination. A well with E. coli bacteria.
At this time, we can expect business income coverage. Insurance carriers will deny such coverage because most Businesses cannot prove the actual presence of the virus on the premises.
However, it would be argued that the fear of the presence of the virus is sufficient to enforce such coverage.
Finally, depending on the type of insurance policy, your Policies can and do include a "policy exclusion" clause that seeks to limit coverage to specific conditions such as viruses, bacteria, mo Soil, microorganisms, contamination, pollution, etc.
However, it is important to note that not all policies include such exclusions and such exclusions in your policy may not be fatal to your claim.
Therefore, regardless of the existence of such an exclusion, you should always consult with an attorney and request that they review your policy to determine whether you may be entitled to compensation for your losses.
Civil Authority
You may also be covered for damages that result from a "civil authority". Civil authority coverage applies when an order or action is issued or taken as a result of (a) physical loss or damage or (b) against property adjacent to the insured premises or within a specified distance of the insured perils, which prevents , restricts, or obstructs access to the insured premises.
When a covered cause of loss causes damage to property other than property on the premises described, the insurance company will pay for the actual loss of business income sustained by you and necessary additional expenses incurred due to the action of the civil authority that Restricts access to the described.
Premises provided that 1) access to the area surrounding the property damaged as a result of the damage is prohibited by the civil authority, and the premises described are within that area but not more than one mile from the damaged property and 2) the action of the civil authority is dangerous physical is made in response to conditions which arise from the damage or continuation of a covered cause of damage, or action is taken to enable a civil authority to cause the damage.
Courts have interpreted the provision of civil authority to mean that coverage3.
Instead such coverage may be triggered when such an order or action, such as a "stay at home" or "safe at home" or curfew, causes a business interruption, resulting in financial loss. .
When determining whether civil authority has been triggered, it is imperative to look to your state and local orders, which must state the purpose of the order, such as Broward County [FL] Administrator's Emergency Order 20-01, 22 implemented on March 2020, which stated that "the emergency order is necessary because of the propensity of the virus to spread from person to person and also because of the propensity of the virus to attach to surfaces for prolonged periods of time to physically damage property." harming."
Florida's governor also issued a statewide "stay at home" order effective April 3.
Civil authorization coverage for business income will begin 72 hours after the first action of civil authorization that restricts access to the described premises and shall cover such coverage.
Apply for a period of up to four consecutive weeks from the date of commencement.
Civil authority coverage for additional expenses will begin immediately after the first action of the civil authority that restricts access to the described premises and will end on the later of 1) four consecutive weeks following the date of that action, or 2) when your business Civil authority coverage for income terminated.
Extended Business Income
Additional business income relief may be available if the necessary suspension of your operations results in loss of business income payable under the policy.
Such coverage is designed to provide financial coverage for a period of time in which the cause of the loss has been remedied and operations have reasonably resumed.
However, the extended business income does not apply to loss of business income resulting from adverse business conditions due to the effects of a covered cause of loss in the area where the described premises are located.
Insurers will likely argue that such coverage is not available because the sustained losses are due to the fact that all businesses are "ramping up" and therefore competing among each other, rather than against covered losses, causing losses.
Has been Slow profit. Such an interpretation would defeat the purpose of such coverage and would be hotly contested in the ensuing litigation proceedings.
Triggering such coverage means that the insurance company must pay for the actual loss of business income that occurs during the period when the property is repaired, reconstructed, or replaced and operations are resumed.
Such coverage ceases prior to 1) the date on which you can restore your operations with reasonable speed, to a level that would generate business income amounts that would have existed if there had been no direct physical loss or damage Would; or 2) 60 consecutive days after the date specified above.
This coverage can run concurrently with the Civil Authority coverage mentioned above.
This means that a court may determine that you can still collect expanded business income after you've collected losses under the civil authority portion of your policy.
Again, this will be litigated throughout the county as the courts have drawn different conclusions regarding the issue.
FOR FREE LEGAL CONSULTATION, 866-481-5347
ADDITIONAL EXPENSES COVERAGE
ADDITIONAL EXPENSES COVERAGE Allows you to recover essential expenses incurred by you during the "Period of Restoration" that occur if there is any direct physical loss or damage Damage to your property caused by or as a result of a covered cause.
An insurance company shall (1) pay additional expenses to avoid or mitigate the "suspension" of business and to continue operating at the described premises or replacement premises or temporary locations, including relocation expenses and the cost of equipping and operating the replacement location costs involved or the temporary location, and (2) minimize the suspension of business if you cannot continue operations.
Losses due to COVID-19 that may be covered include (1) additional protection to protect business assets in times of social distancing, (2) advertising costs to resume business, (3) premises disinfection efforts to ensure the safety of workers, and (4) relocation costs, potentially including costs associated with equipping employees to work from home.
Contact a Business Interruption Insurance Attorney Today
If your hotel, restaurant, store, or office has suffered financial hardship as a result of COVID-19, contact a Florida business interruption insurance attorney immediately from Doleman Law Group to discuss your claim. Accident Injury Lawyers, PA has the experience to get individuals and business owners the compensation they deserve.
Contact them today at (727) 451-6900 for a FREE, no risk consultation about your claim
. Be sure to document losses and expenses. Making sure you can prove your losses will help speed up the insurance claims process.
We understand that most individuals have great difficulty reading and interpreting the language on their insurance policy. We're here to help.
Dolman Law Group Accident Injury Attorney, PA 800 N Belcher Rd Clearwater, FL 33765 (727) 451-6900
https://www.dolmanlaw.com/legal-services/business-interruption-insurance/
1. “Suspension” means 1) a recession or cessation of your business activities, or 2) if coverage applies to business income including "rental value" or "rental value", that part or all of the described premises is rendered unrecoverable.
2. "Period of Restoration" means the period of time that begins (1) 72 hours after the time of the direct physical loss or damage for Business Income Coverage; or (2) immediately after the time of the direct physical loss or damage for Additional Expenses coverage; caused by or resulting from any covered cause of damage to the premises described.
"The reinstatement period ends on the earlier of (1) the date when the property in the described premises must be repaired, reconstructed or replaced with reasonable speed and of similar quality; or (2) the date when business is resumed at a new permanent location." it happens.