After Governor Jared Polis ordered restaurants to close in-house dining in March to help curb the spread of the COVID-19 virus, Steve and Robin Humble decided it was time to file a claim under their business interruption policy [Source: Aspen Public Radio]. The couple, who owns Free Range Kitchen and Wine Bar in Basalt, were restricted to only offering take-out services which had an extreme impact on their revenue. While the couple thought they would have been able to collect on their policy, their insurer informed them that their claim was not valid.
Along with the denial notice the couple received, the insurer also included a 134-page document that highlighted the word “virus” two times. Humble says the document didn’t say anything about infections or pandemics. Unfortunately, the owners of Free Range Kitchen and Wine Bar aren’t the only ones struggling to get their insurer to pay for the income loss they suffered as a result of being shuttered by the COVID-19 pandemic.
Restaurant owner in Aspen says he didn’t even get a chance to file a business interruption claim before being notified that he didn’t have coverage for his losses.
Aspen Public Radio says that Chef Rob Mobilian, owner of Piños restaurant in Aspen, received a letter from his insurer before he had the opportunity to file a claim. Mobilian told the news source that he received a letter explaining “if you think you’re going to try to make a claim on this, it’s not going to work. We’re not going to cover you.” The restaurant owner said that his insurer flat out told him “Don’t call because you’re going to get the big no.”
Mobilian says that he has paid well over $420,000 in insurance premiums over the last 32 years, the time in which his establishment has been open, and he has never filed a claim. He told the news source that with a $30,000 a month rent payment due and no help from his insurer, the government, or his landlord, he was forced to close Piños during his busiest month of the year and had to lay off his employees during that time.
What option do business owners have when their insurer denies their business interruption claims stemming from COVID-19 losses?
They can hire a Colorado insurance claim denial attorney to intervene. When you add an attorney into the mix, your insurer may be more inclined to settle your claim so that you are able to recover something to go toward your losses. However, if the company is not willing to work with you, then your Colorado insurance claims denial lawyer may recommend that you file a lawsuit against the insurance company. To find out what options are available to you, contact USAttorneys.com today so that you can get connected with a lawyer in your city.