Denver Business Interruption Lawyers
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CALL (800) 863-5312 TO SPEAK WITH A DENVER BUSINESS INTERRUPTION ATTORNEY FOR FREE
COVID-19 has halted business operations across the United States, causing many businesses to file claims with their insurance providers to cover their losses. Business losses due to COVID-19 may be covered under a business insurance policy, even if the insurance company denies the claim. In fact, some business owners may not even be aware that they qualify for this type of coverage, which is why it’s important for any business owner to hire an experienced attorney who may help an owner seek compensation for their business losses.
If you have had your business shut down by an emergency or disaster, call Zinda Law Group at (800) 863-5312 for a 100% free case evaluation with our Denver business interruption attorneys.
COVID-19 BUSINESS INTERRUPTION CLAIMS IN DENVER
Millions of businesses have been forced to close due to nationwide COVID-19 related mandates requiring non-essential businesses to close. Although many small businesses have been ordered to close and are applying for business interruption insurance (BII) coverage, many of these claims are not approved.
According to The Denver Post, many small business owners are learning that some business interruption insurance policies do not cover damages resulting from bacterial or virus contamination. Basically, “the business would require direct physical damage, such as widespread contamination of the facility to be covered. And even if covered, some businesses only are covered for a few days of lost income, not the weeks or months a pandemic can last.” For example, executive director of the Rocky Mountain Insurance Company Association has stated, “We realize businesses are struggling through the restaurant shut-down during this extraordinary situation. Business interruption coverage is generally tied to a specific cause of loss for physical damage that results in businesses’ inability to do business, and property policies typically exclude closure due to a virus or bacteria.”
Essentially, it is up to business owners to double-check their coverage, which is why hiring an experienced business interruption attorney may assist you in seeking coverage for your business losses.
The Denver Post reported that the Colorado Division of Insurance has had one complaint filed about BII in the past week. According to Colorado Division of Insurance spokesman Vince Plymell, “This particular insurance coverage is being discussed in all states right now, as well as at the federal level,” he said. “While health insurance issues have been the first things to be considered due to the impact of COVID-19, the Colorado Division is also looking at a variety of issues related to property and casualty insurance and what those issues mean for consumers, as well as the insurance industry.”
WHAT IS BUSINESS INTERRUPTION INSURANCE?
Business interruption insurance is a type of insurance that covers a business’s lost income in the event of a disaster or emergency. BII is not an individual insurance policy to be purchased, but is instead included in an insurance policy package or is added on an existing property or casualty policy. BII coverage lasts until the end of the business interruption period. This period usually lasts until the damaged property is repaired and restored back to its condition before the disaster.
Most BII plans cover more than lost income. Specifically, BII usually covers:
Employee Wages
BII plans may help business owners pay their employees’ wages if payment of wages is deemed essential to avoid losing employees while the business is shut down.
Profits
BII plans may reimburse the profits the business would have made had the emergency or disaster never occurred. These reimbursements are typically based on the business’ earnings the prior month.
Fixed Costs
BII plans may cover fixed costs for operating expenses, supplies, and other costs associated with running the business.
Temporary Relocation
Some BII policies may cover the costs of moving to a new or temporary business location.
Loan Payments
When an emergency or disaster halts a business’s operations, BII coverage may help cover loans the business is required to pay back.
Additional Costs for Training or New Equipment
Your business may have to utilize new programs or machinery and hire new staff to deal with the disaster or emergency. Many BII policies may cover the costs of new equipment and training costs.
FILING A CLAIM FOR BUSINESS INTERRUPTION COVERAGE
Dealing with the shut-down of your business may be complicated and stressful enough, but filing a claim for BII doesn’t have to be. Remember, if you need BII and want to ensure that your insurance company honors your business coverage, a business interruption lawyer may help you file a claim for business interruption. In order to file a business interruption claim:
- Immediately contact your insurance company.
- In the event you were forced to close your business due to theft or vandalism, be sure to report these damages to the police.
- Try to minimize your losses by shutting down your business as quickly as possible and making any repairs necessary to prevent further damage.
- Document any property damage by taking photos.
- Make sure you have done a close accounting of your business’s costs and expenses during the shutdown period.
In the event your insurance carrier denies your business interruption claim, you should:
1. Collect and Save Documents
The insurance company should provide you with a detailed explanation of why it denied your claim. Saving these documents may help you in a lawsuit by showing that the insurance company breached its contract under the policy or acted in bad faith by denying you coverage for an event that should have been covered under the policy.
2. Review the Insurance Policy
Every insurance policy is different and it’s important that you review your policy to understand your specific coverage and what you may be entitled to. Remember that an experienced business interruption attorney often knows where to look in your policy to determine whether you may be entitled to coverage.
3. Contact an Attorney
An experienced attorney may assist you in seeking compensation for your business loss.
Learn More: How to Calculate the Value of a Claim
DO I NEED A LAWYER TO FILE A BUSINESS INTERRUPTION CLAIM?
In the event your insurance carrier denies your business interruption claim, you should contact an attorney immediately. Just because your claim was denied does not mean you don’t deserve coverage.
Hiring a lawyer may help you file a lawsuit for breach of contract or an action for bad faith on behalf of the insurance provider. Specifically, a breach of contract claim is brought when an insurance company fails to make payouts it is obligated to make under a binding contract signed by both the insurance company and the business owner. A bad faith claim is made when an insurance company wrongfully denies coverage to a business owner by claiming that an event is not qualified for coverage under the insurance policy. Bad faith cases often involve debates over legal semantics in the policy, so it’s important to have an experienced business interruption lawyer on your side.
HOW ZINDA LAW GROUP HANDLES FIRST-PARTY INSURANCE DISPUTES
A first-party insurance claim is made by the policyholder to receive protections offered in the policy. For example, if a building you conduct business out of burns down and you hold a BII policy, you would file a report directly with your insurance provider. The insurance company would then evaluate the merits of your claim and, if necessary, pay out the policy’s proceeds.
An experienced attorney at Zinda Law Group may help you file your claim within the allotted time frame and within the rules of your contract with the insurance company. In the event your insurance company refuses to honor the policy by covering your losses, an attorney may assist you in filing a lawsuit on your behalf in civil court. Your attorney may even take your case all the way to trial if the insurance company is not able to settle the case.
ZINDA LAW GROUP’S DENVER BUSINESS INTERRUPTION ATTORNEYS MAY HELP YOU AND YOUR BUSINESS
If your business is shut down due to COVID-19, you may face difficulties in receiving the coverage you need from the insurance company. At Zinda Law Group, our business interruption attorneys have the knowledge and resources necessary to help you build the strongest case possible and to seek the compensation you may be entitled to from the insurance company.
Our firm believes that an injured victim should never have to worry about their ability to afford excellent legal representation. That is why we offer 100% free consultations, and why you pay nothing unless we achieve a favorable settlement, judgment, or verdict for your claim. That’s our No Win, Fee Guarantee.
If you or a loved one has had their business shut down by an emergency like COVID-19, call Zinda Law Group at (800) 863-5312 for a 100% free case evaluation with our Denver business interruption attorneys.
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