We are insurance litigation leaders, helping to get business insurance claims paid. While we have great experience in business property and business interruption litigation, the latest claims and denials are rapidly developing from COVID-19 corona virus and the public orders put in place. While the largest insurance companies in the United States (and the world) have joyfully collected large premiums throughout the years, the commercial general liability (CGL’s) insurers are coordinating their denials of these claims.
Many insurance policies have their own particular additional coverages, which are purchased for additional premium payments, too. Those additional business coverage insurance endorsements may provide for additional coverage, and additional reasons, that the insurers need to pay your claim.
Fundamentally, the novel corona virus is something that creates a physical presence in and on your insured business property. That intrusion is part of the typical policy language giving rise to the insurance company’s duty to pay business interruption insurance claims. There may be other requirements, too.
Another very important point is that many of the commercial general liability insurance policies have very broad insuring provisions. Those broad all risk forms set the standard for including a risk inside a claim, making the claim require payment. The exclusions, the parts of the policy that are there to exclude, limit, and restrict coverage, are always interpreted in a narrow and specific way. Often, insurance companies don’t want to admit this reality–that they sold very broad coverages, with limited exclusions.
The insurance companies can’t argue after this disaster, that they did not intend to include a pandemic. While uncommon, pandemics are things known to happen, they have a history, and an insurance company is well stocked with a knowledge of the past. If it truly did not intend to cover this type of situation, somewhere in that 113 page long document, it would have specified that it did not intend to cover a pandemic. If the business insurance company did not include a specific exclusion, which will be interpreted in a limited way by the Court, then the broad insuring clauses of the
Some policies include this type of language: Under the Policy, insurance is extended to apply to the actual loss of business income sustained and the actual, necessary and reasonable extra expenses incurred when access to the scheduled premises is specifically prohibited by order of Civil Authority as the direct result of a covered cause of loss to property in the immediate area of the businesses scheduled premises. This additional coverage is identified as coverage under “CivilAuthority” as part of the Policy’s “Property Optional Coverages” section.
The Policy is an all-risk policy, insofar as it provides that a covered cause of loss under the policy means direct physical loss or direct physical damage unless the loss is specifically excluded or limited in the Policy.
The Policy’s Civil Authority Coverage Section extends coverage to direct physical loss or damage that results in a covered cause of loss to the Property in the immediate area of the “scheduled premises”.
If your policy has any language similar to this, or you would like a review of your potential business interruption claim, contact us, at Adept Law Firm, now. The time to make a strong claim for business interruption coverage is now, and we are here to act, now. You can contact us through the form on our site, or call (818) 986-7100 and speak with us. The consultation is a free, no charge, opportunity to find out more, and take the first step to having your business interruption insurance company pay your claim.