COVID-19: Business Interruption Claims


Businesses across the country are filing lawsuits against their insurance companies for wrongfully denying coverage for their insured’s business losses as a result of the COVID-19 pandemic. Often times these insurance companies are making blanket denials and the war of the media and politics has already begun to drawl battle lines to once again pit small business owners against their insurance giants.

Business interruption claims seek to force insurance carriers to cover claims (i.e. business losses) as part of their contractual obligation for the premiums business owners have paid for their individual insurance policy. In some situations the COVID-19 pandemic has triggered coverages that are available under the policy terms. These terms and conditions provide that businesses should be receiving compensation from these policies which may be available where the federal or state government ordered businesses to close or reduce operations. In addition, a business interruption claim may provide additional compensation if the business has incurred additional costs to continue business operations, which can include the expense of setting up remote operations.

In a following series of blogs we will address different types of coverages that may be available to business owners including:

  • Business income coverage;
  • Civil authority coverage;
  • Dependent authority coverage;
  • Extra expense coverage; and
  • Other coverage found in insurance policies.

Similarly we will address anticipated “exclusions” and expose the growing trend of insurance companies denying claims from the pandemic by misconstruing Federal and Florida case law and or attempting to rely on exclusionary policy language.

Given the nature of these claims, any business owner has to get serious about the lengths their own insurance carrier will go to deny the claims in order to withhold the monetary compensation which should be going to policy owners. In these situations, it is imperative that the business owners seek experienced legal representation to navigate these claims and hold these insurance companies responsible.

At Robert Sparks Attorneys, our legal team has been closely following legal developments amid the coronavirus pandemic, and is available to speak with business owners across South Florida about their rights and options for pursuing business interruption claims. If you have questions, call or contact us online to speak with an attorney.