The COVID-19 (coronavirus) crisis has greatly impacted employees and employers in the last month. One of the questions this raises is if insurance will cover any losses for businesses that are related to the pandemic. The loss of income from closures, supply chain disruptions, and an overall reduced demand due to social distancing mandates may prompt businesses of all sizes to seek compensation from insurers.
Business Interruption Insurance
Business Interruption Insurance replaces business income loss in a disaster. A disaster may be a fire or other naturally occurring event. This type of insurance is typically an add-on to a property or casualty policy that is intended to cover direct physical loss or damage to property. Business Interruption Insurance can cover operating expenses, such as moving to a temporary location, payroll, taxes, and loan payments. It can also apply if government actions cause operations to cease temporarily. In the case of coronavirus losses, some policies issued to the healthcare and hospitality industries provide insurance coverage for losses caused by communicable or infectious diseases, even if there are no direct physical damages to the insured property.
Insurers are reluctant to cover Business Insurance losses for the coronavirus pandemic. This is because of the large scale and the extreme correlation of the losses. In response, some legislators are considering actions to shift some economic losses to the insurance industry, particularly with respect to Business Insurance losses.
If you own a business, restaurant, or have questions regarding your policy or business interruption cases, call Rawlins Law, APC. Rawlins Law will provide answers to your questions or guide you to someone who can.
Were you infected with coronavirus at work? Workers Compensation covers bodily injury claims for the insured’s employees. More specifically, it can provide compensation for “occupational diseases” during the course of employment. Some policies do exclude “ordinary diseases of life,” which would apply to a common cold or flu. There may be an expectation for those such as first responders and those in the scientific and medical fields who can establish a direct connection to the COVID-19 illness and the workplace. In the news, the media is sharing more cases of essential workers, especially in the medical field, who are testing positive for coronavirus. You can read a recent article here.
Forced to return to work even though you were feeling ill? You may have a case. Contact us for a free and confidential consultation.
Contact Rawlins Law
There are many variables when it comes to whether or not your policy covers your losses due to COVID-19. It’s important to note that insurance policies vary, as well as the fact that the losses will come in many forms. If you own a business and have suffered a loss during this time of uncertainty, reach out to a professional who can help you answer any questions you may have or direct you to someone who can help.
At Rawlins Law, APC of San Diego, Ashley Rawlins is an experienced personal injury attorney with the knowledge, network, and resources needed to help you during this unprecedented time. She provides honest, ethical, and compassionate representation, and she will give you clear information on where your claim stands. To schedule a free consultation, please call us at 858-257-8778, or simply fill out the contact form below.