A North Carolina court recently ruled in favor of policyholders who were declaring that their insurance carriers replace all of the income they lost due to matters related to COVID-19. The insurance companies put up a fight and declared that no direct physical loss had occurred so they could not receive their claim. The judge did not agree to this and ruled in favor of the 16 restaurant owners who brought this matter to court.
Business Interruption Insurance Policies Related to COVID-19
Many businesses have suffered significantly due to the impact of the coronavirus that has spread across the world. Anyone who has suffered a significant amount of income loss and loss in revenue may be eligible to make a business interruption claim.
Their eligibility to make the claim varies significantly based on the insurance company they have signed up with and the nature of their losses. A person should connect with an insurance lawyer as soon as possible to determine whether they are eligible to make their claim and to get assistance communicating with the insurance company.
Even if a person’s insurer has given them a letter or statement claiming that COVID-19 related losses are not covered by them, this Is not necessarily the truth. Whether a person is eligible to make this claim or not is based on what their original policy states and what wording was specifically used.
If a person runs a restaurant, movie theater, gym, spa, retail store, religious institution, or hair salon they may be eligible to claim in this context because of how significantly these sectors were impacted by the onset of the pandemic. Other business owners may also be eligible especially if the losses they suffered very highly significant.
Since the insurer has so much to lose by reimbursing a person with their required settlement amount, they will often put up a strong legal defense to prevent a person from winning their settlement. To combat this and to have a fighting chance at getting the compensation a person rightfully deserves they will have to put forward a stronger argument with the necessary legal evidence as well. An attorney can also review the policy and inform a person whether they are entitled to make a claim or not based on what they originally agreed with the insurer when they first signed up for the policy.
Speak to a qualified insurance attorney at McCarter & English, LLP to learn more about a person’s rights to make an insurance claim based on the current standing of their business.
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