After business owners in Michigan couldn’t get their business interruption claims approved for the losses they suffered as a result of the COVID-19 pandemic, Rep. Brian Elder introduced House Bill 5739. While there hasn’t been much action taken on the bill since it was first introduced, if lawmakers pass it, it could help many obtain the financial relief they need and believe they are entitled to under their business interruption policy.

HB 5739, which was first introduced on April 24, 2020, states that “an insurer that delivers, issues for delivery, or renews in this state a business interruption policy shall include in the business interruption insurance policy coverage for business interruption due to the novel coronavirus (COVID-19).” The bill also says that “the coverage under this subsection must indemnify the insured, subject to the limits under the policy, for any loss of business or business interruption for the duration of the declaration of state of emergency under Executive Order No. 2020-04.”

Important: HB 5739 applies to insureds who had a valid business interruption insurance policy on the date the bill was proposed and had less than 100 eligible employees working for them in the state of Michigan at the time. The State defines an eligible employee as a “full-time employee who works a normal workweek of 25 or more hours.”


What challenges lie ahead for HB 5739?


As hopeful as Michigan business owners are that the bill will pass, there are some challenges that lie ahead. For starters, if HB 5739 were passed, it could pave a way for other business owners in other states to also get their business interruption claims paid. However, because insurance companies have expressed that a payout this large could bankrupt several small insurers, it is likely companies will challenge the bill. And if this happens, it will only prolong it from being passed.

Therefore, if your business interruption insurance claim was denied yet you believe you are entitled to coverage under your business interruption policy, it’s time you connect with someone who can help you—a Michigan insurance claims denial lawyer.

While most people had never fathomed the idea of having to hire a lawyer to obtain insurance coverage they have been paying for, it is a step many business owners are having to take as their insurer refuses to cover their COVID-19 claims. If you would like the opportunity to sit down with an insurance claims denial attorney in Michigan so they can explain how they may be able to help you get your claim approved, you are encouraged to contact can connect you with a lawyer in your area that has a track record of obtaining successful outcomes for their clients.

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