Filing a COVID-19 Business Interruption Claim with Travelers: What You Need to Know
The novel Coronavirus outbreak has severely impacted the health and safety of billions around the world, but it has also severely disrupted businesses in the nation. States like California have implemented shelter in place orders, forcing closures of non-essential businesses and a significant modification to some essential businesses.
Business-owners whose properties are insured by providers such as Travelers may have financial recourse through business interruption insurance. However, questions remain about what qualifies for business interruption compensation. The expert California business interruption insurance attorneys at our law firm can help you navigate the legal process in this trying time.
If you are seeking business interruption insurance from Travelers due to the impact of COVID-19, please contact Bentley & More LLP today for assistance. We can get to the bottom of your case and give you the answers you need to get compensation for your income loss.
What Businesses May Qualify for Business Interruption Insurance?
If COVID-19 has impacted you in one or more of these ways, you may be able to qualify for business interruption insurance:
- Your business has been shut down
- Your business has reduced its hours of operation
- Your business has had to modify or alter operations significantly to comply with state mandates
- You have had to lay off, fire, or otherwise terminate staff that was previously thought to be essential
If you have had to close your premises for an extended period of time for cleaning and disinfection after potential exposure to Coronavirus, you may also be eligible to recoup any losses.
Does Travelers Cover Business Interruption Insurance for COVID-19?
In a recent correspondence to property insurance policyholders in New York, Travelers indicates that business interruption insurance only applies if there is a direct physical loss of damage to a business-owner’s policy. Additionally, even if there was a direct physical loss as a result of Coronavirus, it implies that there may be exclusions regarding losses due to a virus or bacteria.
While this letter unfortunately seems to indicate that Travelers business interruption insurance does not cover losses resulting from COVID-19, they do also indicate that it may depend on the exclusions and provisions set forth in your specific policy. This may mean that Travelers is looking at exclusions and policies on a state by state, case by case basis.
How Can An Attorney Help with COVID-19 Business Interruption Claims?
Because of Travelers’ stringent policies regarding business interruption insurance, an experienced insurance attorney may be crucial to securing any financial relief needed for your impacted business.
A lawyer with experience in business interruption insurance claims can help gather facts and evidence pertinent to your case and use this information to effectively argue a case for business interruption compensation. If your circumstances do not qualify, a knowledgeable lawyer can find other methods to seek compensation under your business property policy.
Additionally, if you were notified that your claim was indeed valid and it was rejected after filing, an attorney can fully investigate your case files to determine whether or not your provider was acting in bad faith.
What Information is Important in a Business Interruption Insurance Claim?
Before considering filing a business interruption claim for COVID-19, it is always best to sit down with an attorney and gather all important information. At Bentley & More, LLP, we urge clients to have, at the very least:
- A copy of your business property policy
- A copy of any government or state mandates regarding Coronavirus that have impacted your business
- Any prior communications with your provider regarding the Coronavirus outbreak and subsequent coverage
- Profit and loss statements of your business for at least one year, including any operating expenses incurred as well
- Any documentation or transactional information that clearly displays how Coronavirus has impacted your business: receipts, invoices, statements
- Any other financial loss or expenses incurred as a result of COVID-19
This information will be crucial in determining the best route of action for your business interruption insurance claim.
Contact Us If COVID-19 Disrupted Your Business Operations and Income
An interruption to your business under normal circumstances can have a profound impact on your livelihood; having to deal with lack of income during a global pandemic can be insurmountable. Contact us today to discuss your situation. We want to help any and all businesses who have been disrupted by COVID-19 get the help they deserve during these difficult times.