Omaha Business Interruption Claims Attorney
Legal Assistance for Nebraska Business Owners
Commercial Litigation Services
Many business owners purchased business interruption insurance as part of a package to replace lost income in case the business is unable to reopen after a covered loss. As the COVID-19 pandemic caused a massive shutdown of companies throughout the United States, many nonessential businesses were temporarily shut down, leading to a financial crisis for the owners. However, despite many business owners in Nebraska having interruption insurance coverage, insurance companies have been resistant to providing proper compensation for their losses.
If you have business interruption insurance and are having difficulties filing a claim or your claim has been denied during the COVID-19 pandemic, contact an Omaha business interruption claims attorney. The legal team at Bottlinger Law L.L.C. can review your policy to determine if you have a valid claim for losses related to the coronavirus pandemic. Call us at (402) 505-8234 to discuss your case.
What Does Business Interruption Insurance Cover?
Business interruption policies typically cover property damage or physical losses to a company, traditionally in the cases of fires or floods, to mitigate the chances of a business owner having to file for bankruptcy. However, some policies also include specific provisions that allow coverage for the disruption of a supply chain without any physical damage to your business’s premises. This means if your business requires certain materials to operate or are unable to continue the production of specific products because of manufacturing delays or shutdowns, this policy should cover your losses.
In addition, interruptions caused by actions of civil authority, such as local, state, or federal government orders, are usually covered by business interruption insurance policies. As numerous restaurants, bars, shops, gyms, and offices had to close public access as part of Nebraska’s response to the COVID-19 outbreak, many business owners saw drastic drops in profits and an increase in layoffs to remain afloat. If the state of Nebraska or a local city government restricted access to your business in a COVID-19 quarantine, you might be eligible for coverage based on these losses. The coronavirus can also attach itself to physical surfaces on business premises. From the perspective of the policyholder, this causes an actual physical loss, as it requires expensive sanitation procedures to remove, which can also be included in your damages.
What Is the Likelihood of Your Claim Being Denied?
To limit their own losses and maximize profits, insurance companies are fully prepared to deny most claims and refuse coverage for coronavirus-related business interruptions. Some are claiming that COVID-19 has not led to an actual physical loss or that these policies do not cover the loss of income due to market conditions or infectious diseases.
Many are citing a statement by the American Property Casualty Insurance Association (APCIA), which declares that the overall cost of applying policies to COVID-19 closures could lead to a net loss of $255 billion to $431 billion a month for the insurance industry and that policies should not cover infectious diseases like the coronavirus. Insurance companies even adjusted their policies to exclude viral outbreaks since the SARS epidemic. Thus, if you file a claim under your business interruption policy for loss of income due to COVID-19 interruptions, your claim is likely to be denied. However, that does not mean you do not have options.
What Steps Can You Take If Your Claim Is Denied?
Some lawmakers are considering legislation to force insurance companies to pay for losses related to COVID-19 under business interruption policies. In the meantime, you will want to discuss your claim with a knowledgeable attorney who can thoroughly review your policy. While some may specifically exclude viral outbreaks, otherwise may have fewer exclusions and could potentially cover COVID-19 losses. Even if your claim is denied, you may be eligible for an appeal.
At Bottlinger Law L.L.C., our lead attorney can:
- Review your business interruption policy carefully
- Catalog all losses because of the COVID-19 shutdown, including sanitation expenses, a drop in income, a loss in customer retention, and other expenses
- Notify the insurance company of your losses within the required time period
- File a claim or appeal a denial on your behalf
Our firm takes pride in offering personalized legal services to our clients and specializes in commercial litigation. Our lead attorney is experienced in working on both sides of the claims process and understands how to negotiate effectively with insurance companies who are resistant to paying out for damages. If you have business interruption insurance and have suffered financial losses due to COVID-19 lockdowns or quarantines in Nebraska or Iowa, contact Bottlinger Law L.L.C. at (402) 505-8234 to schedule a free consultation. Our Omaha commercial litigation attorney can explain your options under the law and advise you if you may have a valid claim.
- How To Recover Damages In a Business Interruption Claim
- The Current State of Business Interruption Laws in Nebraska
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