But that isn’t a guarantee that your claim is going to get paid.
As business owners in Maine began to see their profits drop as a result of government-ordered closures caused by the COVID-19 pandemic, many contacted their insurance carriers for answers. One of the most commonly asked questions Cheney Insurance, which offers commercial property and liability insurance to business owners in Maine has been receiving is: Will my business interruption insurance cover the loss of income I suffered if my business closed due to COVID-19?
If you are a business owner in Maine who has suffered a financial loss as a result of the pandemic, you may not be happy with the response the insurance carrier provided.
According to Cheney Insurance, “business interruption insurance covers the loss of income resulting from a disaster and rebuilding period.” The company’s website explicitly states, however, that “closures from viruses, including COVID-19, are not typically covered under business interruption insurance because in order to be covered, the interruption must be caused by or result from a covered loss, which includes only physical loss or damage.” The company added that “even though we think that in most cases insurance won’t cover loss due to a COVID-19 closure, it may be worthwhile to file a claim.”
Cheney Insurance also said that its carriers will be reviewing each claim individually “and adjusters may decide that some detail may make a business eligible for coverage in certain situations.”
Commercial Property Insurance Unlikely to Cover Virus-Related Losses
Aside from addressing business interruption insurance, Cheney also explained that business owners may not find coverage available for COVID-19 losses under their commercial property insurance. The carrier says that this type of coverage covers losses or damages stemming from “incidents such as a fire, theft, or natural disaster.” The company also states that these policies typically contain exclusions for viruses or bacteria. This exclusion clause reads, “We will not pay for loss or damage caused by or resulting from any virus, bacterium or other microorganism that induces or is capable of inducing physical distress, illness or disease.”
While the information above relates only to the policies Cheney Insurance sells, there are plenty of companies that also sell business interruption insurance coverage that say their policies will not cover virus-related losses either.
Did you recently receive a denial notice from your insurer for your business interruption claim?
Many insurers are guilty of denying business interruption claims before conducting a reasonable investigation which is an unfair practice that should be recognized. If you think your insurer wrongfully denied your claim or provided you with inaccurate information, USAttorneys.com is here to help you locate Maine insurance claims denial lawyers near you who are ready to defend your rights as a policyholder.