If the COVID-19 pandemic has taught us anything, it’s that the world can change in an instant. Business owners across the country have been caught off-guard by statewide orders to close their businesses in an effort to slow the spread of the novel coronavirus.
In times like these, it’s more important than ever to have a commercial property insurance policy that will come through for you. Below, we discuss three key elements to look for in a commercial property insurance policy.
#1. Business Interruption Coverage
Business interruption insurance is a valuable form of coverage to have, and it is meant to pay for lost income that a business suffers after a disaster. Business interruption coverage can be very useful after natural disasters—fires, floods, earthquakes, and the like—cause physical damage to a commercial property.
While most would consider a global pandemic to qualify as a disaster, many insurance companies do not agree. Due to the indirect nature of the damage that the coronavirus pandemic has wreaked on businesses, many insurance companies are denying their customers’ claims.
It’s important to keep in mind, however, that the language with which insurance policies are worded is very nuanced, and it takes an experienced attorney to be able to sort through insurance policies to determine whether a claim is legitimate. At The Ammons Law Firm LLP, we have found language in many policies that provides a strong case for coverage of business losses due to the coronavirus.
#2. Civil Authority Coverage
Those who have civil authority coverage as part of their business interruption insurance policy may have an easier time getting claims related to the coronavirus pandemic approved. Civil authority coverage pays for lost business income when your business is closed by order of a government entity, which is the case for many small business owners across the country right now.
#3. Microorganism Coverage or Exclusion
After the SARS outbreak in 2003, many insurance companies changed the wording in their insurance policies to exclude damages caused by microorganisms, including viruses and bacteria.
Many policies, however, only exclude losses caused by bacteria or viruses, but not both. These nuances in policies’ language make it essential to speak with an attorney who can carefully review your policy.
Did Your Business Interruption Insurance Claim Get Denied? Contact Us Today
A commercial property insurance policy, along with business interruption coverage, can greatly benefit business owners during this time of economic turmoil. The losses business owners may be compensated for include:
- Lost profit
- Overhead and payroll
- Loan payments
- Business taxes
- Expenses incurred to minimize the business interruption
If you have suffered significant business losses due to the coronavirus pandemic and your business interruption insurance claim got denied, our team is here for you. Right now, we are offering a free, “no-risk” review of insurance policies for businesses that have been closed during the COVID-19 pandemic.
Contact The Ammons Law Firm LLP today at (281) 801-5617 to schedule your free review.