Questions related to business interruption insurance have been circulating the internet for months now as business owners are unable to confirm whether or not they are actually entitled to coverage under their business interruption policies. The fact is, most, if not all business owners have either been told by their insurer that coverage isn’t available or they have had their claim denied. Despite the responses they are receiving from their insurers, many business owners in Kansas still believe they are entitled to coverage for their COVID-19 losses.


The Kansas Insurance Department Attempts to Address Whether Business Interruption Insurance Covers Pandemic-Related Losses


Because so many business owners in Kansas are uncertain as to whether the information their insurer is providing them with is accurate, the Kansas Insurance Department has decided to address their concerns. According to the department, “it is unlikely that a business policy would cover losses related to COVID-19 as most business policies have communicable disease exclusions.” However, the department does encourage policyholders to read through their policies carefully and look for all the exclusions listed in it.In the event you aren’t sure whether or not you have coverage, the department recommends that you contact your insurer and/or agent for help. The Consumer Assistance Division is also available to answer questions and can be reached at 1-800-432-2484. Although the department says that business interruption insurance typically doesn’t cover pandemic-related losses, that shouldn’t be interpreted to mean that all business owners aren’t entitled to coverage for the losses they suffered as a result of the COVID-19 pandemic.


Your Insurer’s Obligation to You


Whether or not you have coverage that will pay for pandemic-related losses, your insurer is obligated to:

  1. Conduct a reasonable investigation based upon all available information before refusing to pay claims.”
  2. “Attempt in good faith to effectuate prompt, fair, and equitable settlement of claims in which liability has become reasonably clear.”


What this means is that your insurer is required to conduct an investigation into your claim before making a determination on it. Unfortunately, we are learning that many insurers are being accused of neglecting to conduct an investigation and instead, are denying claims the same day they receive them citing that pandemics are excluded and/or there is no physical damage which is a trigger for business interruption insurance.

Now, if you aren’t sure whether your policy covers the recent events that have caused your business to suffer a financial loss, you need to speak with a Kansas insurance claims denial lawyer. An attorney can read through your policy and decide whether your insurer provided you with false information or wrongfully denied your claim. If you are ready to speak with a Kansas insurance claims denial attorney in your city now, contact for help.

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