The stay-at-home policies ordering the closure of “nonessential” businesses have wreaked havoc on companies large and small. These restrictions have brought countless businesses to an abrupt halt, and many owners are looking for solutions to recover or at least partially mitigate their losses.
Many commercial insurance policies offer business income and extra expense coverage (business interruption), and business owners have already begun filing claims due to losses they have experienced as a result of shutdown orders. However, many commercial policies have specific exclusions, such as losses from a virus or bacteria, government intervention, etc. Each and every business will need to review their specific coverage language.
Given the nature of these unprecedented times, the ultimate resolution of those claims is challenging to predict. Insurance companies and corporate advocacy groups each have taken positions as to whether insurance policies should cover claims for losses arising from COVID-19 and the related economic upheaval. Indeed, there are actions being considered by state legislatures (as of this publication five states – Pennsylvania, Ohio, New Jersey, New York and Massachusetts) to force insurers that provide business interruption coverage to pay out claims related to the COVID-19 pandemic.
It seems like the only certainty in these times is that the next several months will include numerous challenges for both carriers and insured companies. Throughout the past 30 years, Gleason has guided clients including small businesses, large corporations, and insurance companies through the process of calculating and documenting business income and extra expense losses. We are prepared to assist you in navigating any insurance conflicts you may have as a result of the COVID-19 pandemic.
Gleason is well positioned to help our clients with all stages of the economic analysis associated with complex insurance claims, from pre-claim assessments through claim evaluation, and including providing expert testimony should a dispute result in mediation, arbitration, or litigation. We are here to help you address these challenging financial and insurance related issues.