How to Get Insurance Companies to Pay Out Your Business Interruption Claim

TL;DR

This webinar discusses the implications of COVID-19 on business interruption insurance claims and provides guidance on how to file a claim and navigate the challenges.

Transcript

• And I'm Mark Nation of Morgan & Morgan. And I'm here to chat about business interruption, business income claims and that is the view okay at this point? - [Ned] You're looking beautiful here. - Alright thank you so much. And I'm here at my home office and kind of dressed up but the way we are handling today's webinar is exactly how we're doing c... Read More

Key Insights

• 👨‍💼 Business interruption claims originate from property coverage policies, and coverage triggers may vary.
• 🌸 The burden of proof typically falls on the insured to demonstrate direct physical loss or damage to the property during the policy period.
• 🍉 Different states have different interpretations of policy terms, exclusions, and coverage triggers, making it challenging to pursue class actions or an MDL.
• 😄 It is crucial to review lease agreements and communicate with tenants regarding rent abatement or deferral options during periods of business interruption.
• 🧑‍⚕️ Liability coverage and workers' compensation coverage should also be verified for COVID-19-related cleaning or exposure risks.

Questions & Answers

Q: Should I file a claim with my insurance company myself or through my insurance agent?

It is recommended to file the claim directly with the insurance company, while also providing a copy to your insurance agent. This ensures that your claim is properly addressed by the insurance company.

Q: What am I entitled to recover under business interruption insurance?

Generally, you are entitled to recover your normal ongoing expenses and profit before taxes, as well as extra expenses incurred due to the suspension of your operations.

Q: Is there coverage for COVID-19-related losses in commercial leases?

The coverage will depend on the specific lease agreements. Some leases may include provisions for rent abatements or deferrals in the event of a casualty or loss, while others may not. It is important to review individual leases and consult with an attorney or insurance agent to understand your coverage.

Q: Can insurance companies deny business interruption claims based on virus exclusions?

Insurance policies vary, and not all policies include virus exclusions. Even if an exclusion exists, it may not be applicable to COVID-19 losses. It is recommended to have an attorney or insurance agent review your policy and evaluate its applicability to your claim.

Summary & Key Takeaways

• The speaker, Mark Nation, has over 30 years of experience assisting policyholders with claims and specializes in business interruption claims.

• He emphasizes the importance of filing a claim immediately and provides a template for a claim letter.

• The webinar addresses common questions and concerns, such as coverage, exclusions, burden of proof, and potential double recovery.