Insurance May Cover Business Losses During Covid-19 Shutdown

Houston, TX, 2020-Aug-28 — /EPR Network/ — Business Interruption Insurance(BII) may be available to cover business losses due to Covid-19 shutdowns. Houston attorney Joel Joseph says, “Many business owners pay into BII insurance without knowing it. BII is not typically sold as a separate insurance policy. Usually, BII is included as an add on to a comprehensive policy package or added onto a property/casualty policy.”  Within the policy BII may be called by several different names including “business interruption”, “time element”, “business interruption coverage”, or “expense coverage.” Businesses which are forced to close due to mandatory shutdowns often find themselves unable to pay debts, payroll, and other costs. BII protects those businesses stopped due to a “covered peril.” The term “covered peril” differs from policy to policy, but typically it includes fires, floods, theft, failing objects, vandalism, and other unexpected emergencies. BII typically covers profits, employee wages, taxes, fixed costs, loan payments, temporary relocation, and additional expenses.

How to Find Out If You Have BII Coverage

Review your insurance policy to ensure BII is included. If you do not have access to your policy contact your insurance agent broker or company and ask them to send it to you. Even if you do not think you have business interruption coverage, you should check. If you bought coverage a while back it is possible your broker sold it to you as an add-on. Business owners pay monthly premiums for insurance coverage. Insurance companies should honor the coverage agreement. However, many insurance companies do not honor their end of the bargain. Especially during a national catastrophe where many businesses will be seeking to file a claim.

Attorney Joel Joseph says, “Just because the insurance company denied your claim, does not mean you do not have coverage. In fact, most insurers have taken the position that Covid-19 losses are not covered. However, the courts will ultimately decide that matter. The details of your policy are key.” Each policy is different. Therefore, it is important review and evaluate your policy. One word can make a difference between coverage and non-coverage. BII also has a strict deadline requirement for first notice of loss. It is advisable to file a claim within the first notice of loss time-frame to preserve your right to dispute the insurance companies position later. If you have any questions about your policy, contact The Law Office of Joel T. Joseph at (713) 491-4257.

If you would like more information or would like to schedule an interview with Joel Joseph please contact The Law Office of Joel T. Joseph by phone: (713) 491-4257 or email: joel@joeljosephlaw.com