Coronavirus (COVID–19) is an illness caused by a virus that can spread from person to person. This health crisis is causing an impact on loss of life and severe human suffering.
The Coronavirus Pandemic brings with it the third and exceptional economic, financial, and social shock of the 21st Century, after 9/11 and the Global Financial Crisis of 2008.
There is substantial uncertainty about its impact on people’s lives and livelihoods.
Many are assuming and hoping that the pandemic fades in the quarter-end of 2020. There are policy actions taken around the world that are effective in preventing widespread firm bankruptcies, extended job losses, and system-wide financial strains. We can project global growth in 2021 to rebound to 5.8 percent.
Policymakers will need to ensure that people can meet their needs and that businesses can pick up once the acute phases of the pandemic pass.
One of the actions that businesses can consider is Business Interruption Insurance.
What is Business Interruption Insurance?
Business Interruption Insurance is an insurance that covers the loss of income that a business suffers after a disaster.
For example, if a tree falls on your office roof and you need to shut down for repairs, this policy can help cover the costs of your lost income while they restore it. Your business income insurance may also ensure a civil authority, like a government-mandated road closure that temporarily shuts down your company.
What does Business Interruption Insurance Cover?
Business interruption insurance is insurance coverage that replaces income lost if the business halted due to direct physical loss or damage, such as might be caused by a fire or a natural disaster.
This type of insurance also covers operating expenses, a move to a temporary location if necessary, payroll, taxes, and loan payments.
In rare cases, business interruption insurance can apply if a civil authority shuts down a business due to physical damage resulting in a loss for a firm.
Standard business interruption insurance does not reimburse policyholders if the business is closed due to a pandemic. Even some all-risk insurance plans have specific exclusions for losses due to viruses or bacteria.
Currently, one of the only ways for a business to recover its losses due to COVID-19’s impact may be under infectious disease coverage. It is difficult to predict whether the presence of the virus or the threat of contamination will be sufficient to trigger business income coverage.
However, it is not too late to have COVID-19 business insurance. Different State Legislature is taking actions regarding the gap in coverage and economic loss.
The Missouri Department of Insurance offers a site as a resource for small businesses. The website has different insurance contents that may help consumers and small businesses in the Kansas, Missouri area.
Who can claim this COVID-19 Business Interruption Insurance?
Requirements may differ from provider to provider, but usually, you may qualify for business interruption insurance if:
- Mandatory close of business due to an extenuating event
- Your business had to reduce its hours due to an extraordinary event
- Government mandate issues that have forced your business to close for an extended, undefined period.
- Cutting staff or furlough workers that you have previously deemed essential to your business.
- You had to close your business to properly clean and disinfect the property due to someone who tested positive for coronavirus.
Who and where can you get help for COVID-19 Business Interruption claims?
Companies in the United States continue to file COVID-19 business interruption lawsuits against their insurers for claims arising from state and local government shutdown orders in response to the COVID-19 pandemic.
Law firms can help you to gather necessary documents and things to consider when filing COVID-19 business interruption claim.
At the end
Our experience is our best teacher. It is vital to use our learnings with protective action. It will help us to fight for our right to compensation via business interruption insurance. For further understanding on how to file COVID-19 business interruption claims, you may contact different law firms for briefing and consultations such as wendtlaw. They are reaching out to businesses ensuring that they will receive the help and support their needs. People united helping each other during times of difficulties. Humanity and Unity can save us all.
Author Bio:
Samuel M. Wendt
Attorney Samuel Wendt is a personal injury attorney and founding member of Wendt Law Firm P.C. and has dedicated his practice to representing injured people and their families.
Mr. Wendt has successfully represented countless people involved in automobile and commercial vehicle accidents, victims of medical malpractice and nursing home neglect, and wrongful death claims.
He has also represented hundreds of clients injured by defective pharmaceuticals and medical devices, such as Diet Pills, Vioxx, Avandia, Actos, and Yaz/Yasmin, to name a few.
