Business Interruption Claims Attorney in Nashville
Has the coronavirus crisis interrupted your business operations in Nashville? Did the pandemic force you to close your business or lose significant profits? If so, you may be eligible to recover compensation through a business interruption insurance claim. But if you’ve tried and failed to get coverage through your insurer, a bad faith insurance attorney from the Employment and Consumer Law Group can help.
An insurer that denies or underpays a valid business interruption claim may be violating its obligations to you. COVID-19 has created unprecedented demands on both business owners and insurance companies. Figuring out what you’re owed will require a detailed analysis of your insurance policy. Even if your business interruption claim has already been denied, you may not be out of luck.
Contact us today for a free consultation with an experienced bad faith insurance lawyer in Nashville, TN. You don’t have to worry about the cost of getting legal advice. All initial consultations at the Employment and Consumer Law Group are free.
What Is Business Interruption Insurance?
Business interruption insurance helps business owners manage losses when a covered disaster or qualifying event prevents them from operating. Businesses can typically buy this type of coverage in connection with other policies, such as their commercial package or commercial property insurance.
Although the specific events that trigger insurance coverage vary between policies, business interruption insurance can cover events such as:
- An evacuation and/or roadblock that prevents access to the business
- A government shutdown or similar action by a civil authority
- Physical damage to the business property caused by a flood, fire, or other covered peril or disaster
- Loss of rental income because of a qualifying event
- Burglary or theft
- A disaster that obstructs entry to or exit from the business
- A qualifying event that cuts off the business’s access to essential services, such as electricity or communications
If you’ve experienced any type of business disruption, it’s best to have a lawyer review your insurance policy. The wording in these policies can vary, so it can be difficult to figure out whether or not you’ve experienced a qualifying event.
What Does Business Interruption Insurance Cover?
What your business interruption insurance covers depends on the specifics of your particular plan. However, the types of expenses that these policies typically help businesses cover include:
- Lost revenue due to the temporary business closure
- Added costs that are necessary to let customers know about changes to business operations due to the event
- Expenses of having to operate somewhere else while the primary business location isn’t available
- Bills that continue despite the business interruption, such as employee wages, rent, and utilities
- Costs to rebuild or restore the business
How Is Business Interruption Insurance Calculated?
Insurers typically look at the amount of money that your business would have normally earned if not for the disruption to your operations. This amount is used to calculate the value of your business interruption compensation.
This valuation is often based on historical records, such as the business’s financial documents from previous years, including past tax returns, profit and loss statements, expenses, or sales projections.
Additionally, the amount of money that a business might receive depends on the level of insurance coverage the business owner purchased and policy conditions, such as the length of the restoration period they paid for.
COVID-19 and Business Interruption
While many businesses have faced significant losses due to the COVID-19 shutdown, some business owners don’t want to go through the hassle of filing a claim with their insurance providers because they’ve heard that claims are automatically denied. However, business owners don’t realize that they might still have options to recover compensation through their insurance policies.
Some policies have explicit language saying that the plan will not cover business losses due to a pandemic. It’s vital to review your own policy to understand what your plan covers and the specific limitations, conditions, and exclusions that apply.
No matter the specifics of your business interruption insurance plan, it may be worthwhile to file a claim anyway. For one, your insurer might surprise you and accept your claim. In addition, filing a claim is also the first step in helping you access other legal remedies. If your insurer denies your claim, then you have the right to file a lawsuit. But you are not allowed to sue until you’re received a formal denial from your insurance company.
Bad Faith Insurance Denials
Insurance companies that deny or underpay legitimate claims could be acting in bad faith. But because COVID-19 is such an extraordinary event, it may be especially difficult to determine whether you have a bad faith insurance claim if you’re trying to obtain business interruption coverage. Rather than try to understand the fine print yourself, take your policy and financial information for review by a coronavirus bad faith insurance lawyer.
Even those businesses holding insurance policies that say they don’t cover losses due to a pandemic or virus might end up with additional options in the long run. It happened in the aftermath of 9/11, and government officials are proposing similar exceptions for the coronavirus. The Employment and Consumer Law Group is monitoring these efforts closely to ensure that Tennessee business owners are able to access the full benefits of their business interruption coverage.
How to File a Business Interruption Claim in Nashville
COVID-19 is a unique situation in many ways. While it’s vital to contact your insurance company as soon as possible after your business suffers a loss, it’s also important to submit a complete and convincing claim. This will help improve the chances of your insurance company approving the claim in the first place.
If you’re having trouble understanding the conditions of your policy and whether it might cover losses due to COVID-19, a lawyer can interpret your insurance plan and explain your legal options.
Your attorney can also fill out all the paperwork needed to file your business interruption insurance claim, gather the evidence needed to build a solid claim, and submit it in a timely way. Make sure to keep accurate financial records to document the extent of your COVID-related losses.
How the Employment and Consumer Law Group Can Help
If you’ve been denied business interruption coverage for COVID-19, contact the Employment and Consumer Law Group. Our legal team can review your policy and determine whether you have a bad faith insurance claim.
Our skilled lawyers have in-depth knowledge of how to analyze insurance plans and counteract the tricks that insurers use to avoid paying valid claims. We’ll fight for the maximum compensation you deserve.
There’s no risk to learn your legal options. Call or contact us today for a free consultation.