Business Interruption & Income Loss Insurance Claims

Insurance companies contract to insure your business when circumstances outside your control negatively affect your company’s income and operations. COVID-19 is an example of an unexpected catastrophe, like a hurricane, flood, or wildfire. Such unexpected catastrophes result in billions of dollars’ worth of compensation to insured businesses annually—COVID-19 is estimated to cost businesses trillions of dollars in loss of revenues.

Yet, many companies that have suffered business interruptions as a result of the current pandemic aren’t receiving the insurance coverage they may be entitled to.

Why Are COVID-19 Insurance Claims Being Denied?

Insurance companies profit by accepting premiums and reducing or denying claims made by their insureds. These insurance companies accept premiums to protect businesses when a catastrophe occurs, and income is lost as a result.

COVID-19 is unlike most disasters that shut down businesses because there is no property damage involved—at least, not in the traditional sense. Though COVID-19 isn’t breaking windows or flooding buildings, it can be transmitted through the air or live on surfaces of business settings like offices, shops, and airplanes.

There is precedence for such types of property damage. In Gregory Packing, Inc. v. Travelers Property Cas. Co. of America, a 2014 New Jersey federal court case involving a dangerous amount of ammonia being released into a facility, the final ruling stated: “property can sustain physical damage without experiencing structural alteration.”

Yet, insurance companies are denying COVID-19 claims even though there may be coverage. Despite examples such as the one above, insurance companies are claiming that the property of the business is not damaged, so there is no coverage. These denials have forced businesses to close, stop paying creditors, and lay off employees as a result of the COVID-19 outbreak.

How We Can Help Businesses

Virtually no industry has gone untouched by the COVID-19 pandemic. In the United States alone, over 6 million people have filed for unemployment in the last few weeks. Countless businesses have shut their doors, some temporarily and others for good.

Most businesses nationwide have suffered a business interruption, especially:

  • Professional services, including doctors, dentists, lawyers, and accountants
  • Restaurants and bars
  • Gyms and fitness centers
  • Industry
  • Nail and hair salons
  • Non-profits
  • Retail businesses

If you have suffered a business interruption and income loss as a result of the coronavirus (COVID-19) outbreak and have been denied aid by your insurance company, contact Zambrano Law Firm. Your business may be entitled to recover significant monetary compensation for your business interruption and income loss.

Contact us at (956) 627-0908 for a free consultation and review of your insurance policy.

Contact Our Law Firm

Learn How We Could Help You Through Your Legal Situation
    • Please enter your name.
    • This isn't a valid phone number.
    • Please enter your email address.
      This isn't a valid email address.
    • Please make a selection.
    • Please enter a message.