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Business Interruption Insurance Claims

The COVID-19 shutdown has affected so many businesses. Businesses with business interruption insurance should file a claim for coverage. However, if insurance denies your covered claim you might have a business insurance bad faith claim.

In this article, we’ll take a look at how the COVID-19 pandemic hurt a lot of businesses. Then, we discuss what insurance bad faith is. We also look at business interruption claims. Finally, we provide some guidance on when to talk to an insurance bad faith lawyer about your situation.

business interruption insurance claims

COVID-19 Business Closures

In Pennsylvania, the governor ordered all non-life-sustaining businesses to close. For many small business owners, this will force them to close permanently. But, for those with business interruption insurance coverage, they are able to file a claim. Having this coverage could be the difference between staying in business or closing forever.

pennsylvania business shutdown insurance claims

Business Interruption Insurance Coverage

In the event of a disaster, business interruption insurance covers income loss. This type of coverage is not available as a standalone policy but as an add-on.

Business interruption coverage pays out according to the underlying policy. In most situations, losses are based on past financial records. This coverage also covers operating expenses such as payroll, taxes, move to a temporary location, and loan payments.

Most importantly, business interruption insurance applies if government actions force a business to close temporarily.

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We’re hearing from many local businesses during the COVID-19 shutdown. They are telling us their insurance is denying the business interruption claim.

Insurance Bad Faith Claims

When insurance companies don’t honor their end of an insurance contract, the law allows customers to seek restitution. This includes situations where insurance takes too long to respond to a claim.

In bad faith cases, the customer seeks payment of their original claim plus additional compensation. The compensation is a punishment to the insurance company for violating the terms of the contract.

In any situation where your insurance company denies a valid claim, talk to an experienced lawyer in your state. Additionally, business insurance bad faith claims are complicated. Not every attorney is able to handle them successfully.

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Pennsylvania Bad Faith Insurance Claims Law Firm

At Haggerty & Silverman, we help Pennsylvania businesses navigate their insurance claims. Sometimes, a little legal guidance can be the difference between approval or denial of a claim. Contact us for a review of your business interruption policy and coverage claim.