With economic shutdowns and mandated shelter-in-place orders happening across the United States, many businesses have had to unexpectedly close down for weeks. Now, numerous insurance companies all over the nation are denying business interruption claims related to COVID-19. Well, what is business interruption insurance? Business interruption insurance is typically included in a business owner’s policy (BOP). It provides income in the face of disaster and coverage for extra expenses during times of peril. Our world right now is certainly a time of disaster and peril as COVID-19 spreads like wildfire. Even so, many insurance companies are denying business owners their business interruption claims.

According to Missouri’s Department of Insurance, your business may be eligible for coverage. Some policies exclude communicable diseases and pandemics, and thus COVID-19 related losses might not be covered under business interruption. The policy language controls whether a claim will be paid.

Be advised that it is important to make your claim as soon as possible. Some insurance policies require that claims be made “promptly” while others have specific time requirements. If not done in a timely manner, the claim may be automatically denied. Although many state governments—and even representatives in the federal government—are pushing for insurance companies to cover at least partial losses, no legislation currently requires coverage outside of the policy limitations. Business owners should review your business owner’s policy and contact us as soon as possible to evaluate your business interruption claim.

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The S.E. Farris Law Firm can help you with your insurance claim. If you’ve been denied business interruption coverage from your insurance company, contact us for a free consultation. You can call us at 314-252-9937, or email us at courtnotices@farrislaw.org.