Philadelphia Business Interruption & Small Business Claims Lawyer
Dedicated Business Interruption/Small Business Claims Lawyers Help Business Owners Throughout Philadelphia
Building a successful business is an incredibly rewarding experience. That is why it can be incredibly difficult to have your hard work jeopardized by an interruption in operations, such as the current COVID-19 pandemic, that leaves your business unable to generate revenues and responsible for significant expenses to restart or resume operations. Fortunately, you may have taken steps to protect your business against the risk of an interruption in operations through business interruption insurance.
Even though your company may have business interruption insurance, it is important to understand what that insurance covers. Most policies are limited in the types of interruption they will cover or the expenses or losses that the policy will reimburse your business for. This can make filing a business interruption/small business claim especially nerve-wracking when you may be relying on coverage to help your business weather the storm of an interruption. During the present pandemic, many small and medium businesses are finding that their business interruption insurance carriers are summarily denying claims for coverage, regardless of whether or not a particular policy specifically mentions pandemics or not. As a result, the economic disruptions triggered by the coronavirus pandemic has led to a sharp rise in litigation against business interruption insurance companies.
If you find your business needing to file a business interruption/small business claim, or if you are having a dispute over the compensation you’ve received from your insurer, or if your business has filed a claim that has been denied by the insurance company, you should contact a Philadelphia business interruption/small business claim attorney at Marrone Law Firm. Our firm is ready to help you understand your rights and options and to get to work fighting on your and your business’s behalf to help you secure the insurance coverage you need and deserve.
What Is Business Interruption Coverage?
Business interruption coverage is usually a part of a business’s general or commercial liability policy that provides protection against losses in revenue caused by a business interruption. Business interruption is triggered when a business suffers an interruption in operations due to physical damage. Coverage is provided for the period from the start of the interruption in operations through the time that a business would reasonably be able to restart operations. Business interruption coverage usually is not available when an interruption is caused by:
- Evacuations not required by government order
- Short-term shutdowns (usually 72 hours or less)
- Business losses not caused by physical damage to insured property
Business interruption will provide coverage for the business’s lost income caused by the interruption in operations. Coverage may also be available, depending on the terms of a business’s policy, for additional expenses such as:
- Ongoing operating expenses, such as rent, utilities, property taxes, or wages
- Costs incurred to move to and from a temporary location
- Expenses incurred to restart and resume normal business operations
A policy’s definition of “physical damage” that triggers coverage can vary from policy to policy. Some policies provide coverage when a business suffers an interruption in operations due to damage to supplies or supplier facilities. Policies may also include contamination by disease or toxic substances in the definition of property damage. It may also be possible to negotiate special endorsements to a business interruption policy to remove the property damage requirement, thereby providing coverage whenever an insured business suffers any interruption in operations.
With the current COVID-19 pandemic, many businesses have been reviewing their business interruption policies to determine how pandemic-related shutdowns are covered. Some policies may expressly exclude pandemics from the covered events, while other policies are completely silent on the topic. However, even where policies don’t expressly mention pandemics, insurance companies have been summarily denying COVID-19-related claims as outside the scope of coverage.
Marrone Law Firm, LLC Works Tirelessly on Behalf of Companies with Business Interruption/Small Business Claims
Filing a business interruption/small business claim can be a complex, time-consuming process for any business. You will be required to provide significant documentation to not only establish that your business has suffered a covered loss, but also to establish the exact amount of your business’s losses. You may not have the time and resources to collect all this information and deal with the insurance company while you are also focused on getting your business back to operations. And in the current pandemic, you may find that your insurance company, whom you’ve been paying premiums to for years, possibly even decades, is quickly denying your shutdown-related claims as not covered by your business interruption policy.
The Philadelphia business interruption/small business claim attorneys of Marrone Law Firm can get to work on your behalf, dealing with the insurance companies and fighting to get you the coverage you deserve, so that you can keep your focus on running your business. Our dedicated, experienced lawyers will aggressively advocate on your behalf to get your business interruption covered and to ensure you receive the maximum compensation possible. Our firm can help you collect all the documentation and information you need to establish your claim and will push back against the insurance company’s efforts to deny your claim or under-calculate your losses.
Contact Marrone Law Firm Today to Schedule a Case Evaluation with a Philadelphia Business Interruption/Small Business Claims Attorneys
If your company is suffering from business interruption and you need to make a claim with your insurer, or if your insurer is denying your business interruption/small business claim, contact Marrone Law Firm today to schedule a consultation to speak to a knowledgeable Philadelphia business interruption/small business claim lawyer to discuss your rights and options and to learn more about how our firm can help you secure the insurance coverage your business needs and deserves.
Frequently Asked Questions about Business Interruption/Small Business Claims in Philadelphia
Insurance companies often have formulas to calculate an insured’s losses from business interruption. One primary method of calculation involves multiplying an insured’s total shutdown time by the quantity of goods or services regularly produced by the insured, multiplied by the value of all units of production. Insurance companies will often calculate a lower figure using this formula than you would calculate for your own business to try to minimize the amount of benefits they pay to you. However, a business interruption/small business claims attorney can negotiate with the insurance company to get them to agree to pay out a larger claim.
Your insurance policy will likely give you the right to appeal or dispute your insurer’s denial of your claim. Many claims are denied for insufficient information. A business interruption/small business claims attorney can help you understand the reasons for the denial of your claim and help you secure missing documentation and information to bolster your claim. If your insurance company continues to deny your claim after filing an appeal or dispute, your attorney can help you evaluate other options, including potentially filing suit in court.