The novel coronavirus (COVID-19) has altered the way we live and work. Governments throughout Canada have implemented stay-at-home orders and required the closure of “non-essential” businesses to limit exposure to COVID-19.
Business owners have done their part to keep our communities safe, but at an enormous cost. The restaurant industry in Canada, for example, is projecting losses of $10 billion for two months of closures.
Closing the doors for months at a time has resulted not only in lost income but significant stress for business owners. As bills continue to arrive during the shutdown, the future of many businesses is uncertain.
Amid these challenges, many business owners in Canada are filing business interruption claims to make up for the losses they are experiencing. Unfortunately, many business owners have faced denial of their claims.
Insurance companies argue that business interruption policies don’t cover losses due to viral outbreaks. Others maintain that COVID-19 constitutes an unforeseeable circumstance that prevents insurance companies from meeting the obligation they have to policyholders.
However, insurance companies have an interest in denying claims. In fact, the more claims insurers are able to deny, the more they protect their bottom line.
So what can you do if the insurance company failed to help you? Contact Klein Lawyers for legal assistance.
How Klein Lawyers Can Help with Business Interruption Claims
Insurance policies are complicated. You may believe that your losses are covered under your policy, but the insurance company will look for any reason to deny your claim.
If your business interruption claim has been denied, Klein Lawyers can determine your eligibility for coverage of your losses. Our team will:
- Review the terms of your business interruption insurance policy
- Evaluate the claim you submitted
- Analyze your losses and the documentation you provided
- Assess your options for appealing the insurance company’s decision
We can also advise you of emerging class action litigation against insurance companies in light of business insurance claim denials.
Founder and partner David Klein was recently interviewed by the Vancouver Sun about COVID-19 business interruption claim denials. Read the full article here, or watch the video below:
Am I Eligible for Coverage of My Business Interruption?
In spite of what the letter from the insurance company says, you may be eligible for coverage of the costs associated with interruption to your business if:
- You lost revenue due to a government-ordered business closure or mandatory limitation on operations
- You suffered revenue loss due to social distancing advisories
- You incurred losses from COVID-19 mitigation efforts, such as disinfection, replacement of supplies and equipment, etc.
Ultimately, the question of eligibility is a complicated one. The insurance companies will have you believe not only that your business interruption losses due to coronavirus are not covered, but that paying such claims presents a catastrophic risk to the insurance industry itself.
However, business owners see it as a failure on the part of insurers to uphold their end of the agreement on business interruption policies. At Klein Lawyers, we know how insurance companies operate, and we are proud to advocate on behalf of business owners throughout Canada.
Get a Free Evaluation of Your Business Interruption Claim
Many business owners are facing the same situation as you. Your revenue has suffered in the wake of COVID-19, and you are unsure what the future holds. You counted on your business interruption insurance policy to provide relief, but the insurance company has only added to your concerns.
You are not alone. When you work with Klein Lawyers, our team provides the support you deserve in your time of need.
If your business interruption claim has been denied, please call (604) 874-7171 today for a free consultation. Klein Lawyers serves business owners throughout Canada.