After being shuttered for weeks, many business owners in Delaware want to know whether their business interruption insurance should be covering some or all of their losses as many have been told by their insurer they aren’t entitled to coverage. In response to this growing concern, the Delaware Department of Insurance has provided some answers to some of the most commonly asked questions all of which we have shared with you down below.
- What does business interruption cover?
The department says that “Business interruption insurance protects against losses sustained due to periods of suspended operations and pays [the] loss of revenue that would have been earned if the business operated continuously.”
- What triggers a business interruption policy?
Typically, “policies require physical damage to the property for payment, and many policies have specific exclusions for viral infections, like COVID-19.”
- Will about contingent business interruption policies?
Contingent business interruption policies typically “protect against losses due to disruptions in the supply chain, but these policies may require physical damage to the property for payment, and many policies have exclusions for communicable diseases, like COVID-19.”
- How do I know if I’m entitled to reimbursement for the income I lost after being shut down by the government to help curb the spread of the COVID-19 virus?
The department recommends that you read through your policy carefully “to determine the initial scope of coverage that your policy provides for business interruption and associated expenses.” The department also encourages you to review any exclusions or conditions listed in your policy that would limit your coverage.
Another question that has been frequently asked by business owners in Delaware that hasn’t been addressed by the Delaware Department of Insurance is: What do I do if my insurer denied my business interruption claim even though I purchased the appropriate coverage?
If your insurer informed you either verbally or through a denial notice that you are not entitled to coverage for any losses associated with COVID-19, you do hold the right to obtain a second option from a Delaware insurance claims denial attorney. An insurance claims lawyer can help you to better understand your policy so you are familiar with the coverages that you have. Many insurance companies, regardless of whether coverage is warranted or not, are denying COVID-19 business interruption claims leaving many business owners without anywhere to turn to for financial relief.
If you would like help understanding your insurance policy as well as what your legal rights are when your business interruption claim has been wrongfully denied, USAttorneys.com can help you. USAttorneys.com will connect you with a Delaware insurance claims denial attorney in your city who will be happy to address all your questions and concerns.