If the COVID-19 pandemic has negatively impacted your business, then you may be eligible for a business interruption insurance claim. Most business owners aren’t even aware that they may qualify for this type of insurance claim. Let our Colorado law firm help get you the coverage you deserve under your policy.

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Is Your Business Eligible For Business Interruption Coverage Due to COVID-19?

The COVID-19 pandemic is taking an unprecedented toll on the world. Not only has it impacted global health, but it has significantly impacted the global economy. In the United States alone, over 30 million people—an unprecedented amount—have already filed for unemployment since March 1, 2020, and millions more are reporting significant drops in their income.

How COVID-19 Has Impacted Small Businesses

Businesses have also been negatively impacted due to COVID-19. Millions of businesses, large and small, have been forced to close due to statewide mandates that require all non-essential businesses (those which do not deal with goods or services related to sustaining life) to close. For businesses that have been ordered to close completely, the financial loss is total. While many small businesses are applying for emergency business bailouts, not all of them are approved.

Additionally, what money is provided may not stretch very far in the current economic climate. For businesses that are allowed to remain open, revenue may still be impacted negatively. In almost every state with stay-in-place orders, businesses that have managed to stay open have been required to shutter their physical spaces and serve customers through online, curbside, drive-through and delivery options only.

While some businesses are adapting to this new stipulation well, some small business owners are either unable to handle that transition, or they are not getting enough orders per day to justify the cost of opening for business. In many cases, the orders per day may only be a fraction of what they were before the pandemic, primarily if that business relied on people’s lives—and the economy—operating normally.

RELATED: Does Workers’ Compensation Cover Coronavirus in Colorado?

Business Interruption Insurance: What You Need to Know

You may be entitled to compensation if your business insurance policy includes business interruption coverage. Read on to find out more about what business interruption insurance coverage is, what it includes, and what to do if you think you may be eligible due to the COVID-19 pandemic.

What Is Business Interruption Insurance?

Business interruption insurance coverage is a type of business liability coverage. Business interruption policies are specifically designed to help provide compensation in cases where a business’ day-to-day operations are interrupted. The trigger for business interruption coverage can vary, but the most common are natural disasters, infectious diseases and government orders. Most business interruption policies cover losses caused by a government-mandated business closure. In the context of current events, this means that businesses that have had to close or reduce their normal operations due to governor orders may be eligible under an interruption policy, which includes government-mandated closure coverage.

What Does Business Interruption Insurance Cover?

Business interruption insurance policies are meant to compensate a business for profits that would have otherwise been earned without the disaster or event that caused the interruption. In other words, this type of coverage is designed to boost a business back up to the standard financial position they expected to be in before the interruptive event. Three of the most common types of financial losses that business interruption insurance may cover include:

  • Profits – profits which would have been earned if not for the interruptive disaster
  • Fixed costs – fixed costs or expenses such as rent and utilities
  • Temporary location costs – costs associated with expenses related to operating from a temporary location

However, business interruption policies are not one-size-fits-all. Some may cover interruptions due to some factors and not others, and some may only cover specific elements related to business interruption, such as compensation for profits but not compensation for certain fixed costs. The exact type of compensation offered will depend on the specific policy included in your business insurance coverage. If you aren’t sure exactly what your policy covers, you are not alone. Most business owners do not even realize they qualify for this type of compensation. The experienced Colorado insurance attorneys at Bachus & Schanker, LLC will help you find out what you may be entitled to receive and then fight to ensure you get the compensation that your policy guarantees.

Can Your Business Claim Business Interruption Coverage Due to COVID-19?

In general, yes—you can likely claim business interruption coverage. If you have standard business liability insurance, then it is likely that you will qualify for business interruption coverage due to the current events involving COVID-19. The relevant policy in your business insurance may be found under business interruption coverage, civil authority coverage, or several policies with similar wording. Although most standard liability policies include interruption coverage, a vast majority of insurance companies will do everything they can to downplay this type of coverage or even avoid paying claims. Insurance companies may refuse to honor claimed policies by utilizing small print exceptions in an attempt to reject a claim. It is vital that you do not give up, even if your insurance company has denied you after filing a claim.

Business Interruption Coverage Due to COVID-19: Take Action Now

The economic impact of the COVID-19 pandemic will be felt in the months and years to come. Businesses that have been negatively impacted by current events may be eligible for compensation under a business interruption or similar insurance policy. If your company has been financially affected by COVID-19, then you should take action as soon as possible to file a claim under the right insurance policy. We are here to help you navigate your business interruption insurance claim and, if you are eligible, fight for you to receive your entitled compensation from your insurance company. If you may be eligible for business interruption insurance, contact our insurance experts today for a free initial claim evaluation.

Experienced Attorneys For Business Interruption Coverage

Our Colorado attorneys for business interruption coverage are standing by to take your call. Let us help you approach your case in the right way and seek compensation from all of the avenues that you may deserve. We are conveniently located at 5 Colorado locations near you in DenverFort CollinsColorado Springs, Aurora, and Englewood. Our attorneys are ready to serve you and fight for the compensation you deserve. Call us today to begin.

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Kyle is a member of the Colorado and Florida Bar associations and has served on the Board of Directors of the Colorado Trial Lawyers Association for more than twenty years in total. Over the years, Kyle has achieved justice for many clients. He has served on numerous committees and repeatedly won recognition from his peers at both the state and national level. He is proud of the role he has played in the passage of state and national legislation to protect consumers and is a frequent speaker and guest lecturer.