Pennsylvania Business Interruption Insurance Claims
Business Interruption Claims in the greater Philadelphia metro area
Oh yes, our lives have been interrupted by this pandemic. And we are hard-working, caring people who work for and work as small and large business owners. And as our lives have been interrupted in the course of these months, businesses have been interrupted. Businesses, seeking to protect themselves, have paid for insurance in the unusual event that their businesses were interrupted.
Businesses want to reduce risk and it seems natural that they would pay for insurance coverage To protect them from unforeseen circumstances that could arise they could cause their business to close. Again, it seems natural, that if there’s an interruption in business and you’ve paid for insurance for a business interruption that insurance company should pay a claim once a business files the claim to recover losses for those circumstances.
You know where this is going don’t you. We’re going through a period of time with her is business interruption. Business is small and large light, paid premiums to recover damages caused by unforeseen business interruption with the understanding that in exchange for those premiums, insurance companies would agree to pay them for their losses under the terms of the written agreement. For businesses that have paid for business interruption insurance in Pennsylvania, they have a right to file a claim and the insurance company has an obligation to pay the claim and if they don’t, it’s time for that business to speak to the dedicated, experience, advocate at Ciccarelli Law offices. My team are the experienced lawyers ready to fight m y team are the experienced lawyers ready to fight for your business when you make a claim for business interruption insurance and your insurance company let you down.
The new coronavirus (COVID-19) has caused both state-mandated shutdowns and voluntary decisions for businesses to shutter their doors this year. To protect against these types of unforeseen closures, Business Interruption Insurance is purchased by business owners across the country. But insurance companies are doing their best to deny coverage of these claims to policyholders.
The Ciccarelli legal team understand the importance of you staying in business not just for yourself but for your employees throughout the greater Philadelphia area and the Commonwealth of Pennsylvania. Your ability to stay in business is essential for our community. Now is the time, to seek a free initial consultation from our team where you wish to file or pursue denial for business interruption insurance. At Ciccarelli Law offices, we take on these important Business Interruption Insurance cases on a contingency fee basis, with no fee unless there is a recovery. Contact us now. Ciccarelli Law Offices has offices throughout Pennsylvania; based in suburban Philadelphia at 304 North High Street West Chester PA and offices in Center City Philadelphia, Lancaster, Delaware County, Montgomery County and service business interruption insurance claims throughout Pennsylvania. Call (877) 529-2422.
Philadelphia Businesses Are Facing Issues Because of COVID-19
We are facing the COVID-19 (Coronavirus) pandemic and need determined injury lawyers to help during a troubling time in Pennsylvania. If you were deemed a non-essential business and forced to close and your business was interrupted and purchased business interruption insurance, it is time to seek and retain lawyers to fight for you and the survival of your business.
Insurance interruption claims for losses due to the coronavirus are certain to overwhelm insurance companies and it is very possible insurance companies may delay or obstruct valid payments for various reasons including the unique nature of the COVID-19 damage to your business. It may result in insurance claims issuing denials to business owners who desperately need support from insurance. It is easy to be dismayed or to give up after a denial, but —let Lee Ciccarelli and our personal injury attorneys from help you contest it.
What is Business Interruption Insurance?
In Pennsylvania, insurance is available for a business in the event of a forced closure or disruption.
Business interruption insurance (also known as business income insurance) is a type of insurance that covers the loss of income that a business suffers after a disaster. The income loss covered may be due to disaster-related closing of the business facility or due to the rebuilding process after a disaster.
It differs from property insurance in that a property insurance policy only covers the physical damage to the business, while the additional coverage allotted by the business interruption policy covers the profits that would have been earned.
This type of coverage can be added onto the business’ property insurance policy or comprehensive package policy such as a business owner’s policy (BOP) or as part of a standalone policy in some jurisdictions. Since business interruption is included as part of the business’ primary policy, it only pays out if the cause of the loss is covered by the overarching policy or a defined event in the case of a standalone.
The following are typically covered under a business interruption insurance policy:
- Profits. Profits that would have been earned (based on prior months’ financial statements).
- Fixed costs. Operating expenses and other costs still being incurred by the property (based on historical costs).
- Temporary location. Some policies cover the extra expenses for moving to, and operating from, a temporary location.
- Commission and training cost. Business Interruption (BI) policy essentially covers the cost of providing training to the operators of the machinery replaced by the insurer following the insured events.
- Extra expenses. Reimbursement for reasonable expenses (beyond the fixed costs) that allow the business to continue operation while the property is being repaired.
- Civil authority ingress / egress. Government-mandated closure of business premises that directly causes loss of revenue. Examples include forced business closures because of government-issued curfews or street closures related to a covered event.
This coverage extends until the end of the business interruption period determined by the insurance policy. Most insurance policies define this period as starting on the date of the covered peril and the damaged property is physically repaired and returned to operations under the same condition that existed prior to the disaster.
In addition, businesses can purchase contingent business interruption coverage, which pays out when a business is unable to operate because of an event (such as a natural disaster) that damages the business premises of one of its suppliers or customers, thus preventing it from engaging in normal trade.
Do I have a Business Interruption Insurance claim with COVID-19?
Business Interruption Insurance policies are individually crafted to the insured’s business. This pays for loss of business income due to necessary suspension of normal business operations. This suspension of operations may arise directly from contamination of the facility from COVID-19, a state or local authority’s order, the need to protect employees/customers, or a myriad of other or concurrent causes which impact the use of your business and property for its intended purpose.
A business owner’s coverage of damages due to the coronavirus will come down to the insurer’s specific policy and external conditions, and also might include cases where the federal or state government ordered them to shut down operations. If your business has been crippled by the government-mandated shutdown issued to slow the spread of the coronavirus (COVID-19), you are likely counting on your business interruption insurance to replace lost income, pay bills, and cover payroll. It is anticipated that the insurance industry will be denying business interruption claims on a wholesale basis. Even if this does not occur, many insurance companies will deny claims arising from this pandemic, attempting to rely on exclusions or other policy language.
What Should Businesses Owners Do If Their Insurance Claim Is Denied?
Receiving a denial for your interruption insurance claim can be demoralizing and you may not know what to do next. Appealing an insurance claim takes knowledge of the laws that apply to your claim and experience in contesting denials. Ciccarelli Law Offices believes in standing up for small business owners who are facing difficulties during the COVID-19 shutdowns and we’ll do everything we can to help you.
Why Would Insurance Deny Your Claim?
One of the first steps will be identifying why the insurance company denied your claim. Common examples include:
- Coverage limits exceeded
- Suspected fraud
- Claim wasn’t filed on time
- Claim is seeking damages for something not in the insurance policy
In terms of COVID-19, it’s likely the insurance company will focus on the last bullet point. Pandemics that shut down businesses, schools, and our ways of life aren’t something we’re accustomed to. Seeking insurance because of a mandated shut down can be complex. Our lawyers will do everything possible to contest the claim and show that your claim is valid.
Ciccarelli Law Offices Is Ready
During this uncertain time, it’s important to have representation on your side that will fight for your best interests. We will fight against the difficult circumstances COVID-19 has caused. Small businesses need a fair chance to survive this pandemic so when it’s over, Pennsylvania and Philadelphia citizens can support their favorite local businesses again. Now is the time to act and Ciccarelli Law Offices is ready to be at your side and fight for you when it matters.