consult
X

Request a Free Consultation

Please fill out the form below and we will be in touch soon.
  • MM slash DD slash YYYY

Blog Home

Will FL Business Interruption Insurance Cover Your Coronavirus Losses?
Posted By:

 

Will FL Business Interruption Insurance Cover Your Coronavirus Losses?

In Florida and around the country, there is one pressing topic on everyone’s mind: the coronavirus. For many South Florida business owners, times can be particularly harrowing. Not only do they have to worry about the spread of COVID-19 among their community and loved ones, but many are also struggling with financial woes.

 

Across the state and most regions in the U.S., restaurants, bars, casinos, and entertainment venues are being forced to close or limit service to takeout and delivery only. Stores are being made to shorten their hours and check customer count. Travel is being restricted, cruise ships quarantined, and major events are being canceled.

 

As coronavirus panic spreads across South Florida, many cities have even imposed curfews — including Palm Beach and Miami Beach.

 

The coronavirus has hit our economy hard. So as South Florida businesses shoulder financial losses in their operations, many are turning to insurance companies with coronavirus business interruption claims… and they are being denied.

 

What Is Florida Business Interruption Insurance?

 

As a forward-thinking business owner, you may have opted to receive business interruption coverage under your commercial property damage insurance policy. Many South Florida businesses obtain business interruption insurance to cover losses caused by natural disasters and other emergencies.

 

Since business interruption insurance is designed to protect business owners against risks associated with disasters, you would think your business losses caused by the coronavirus — one of the biggest disasters of our time — would be covered by business interruption insurance.

 

That’s not necessarily the case, though.

 

Insurers Require “Direct Physical Damage” to Pay a Disaster Claim

 

As many business owners in Florida are discovering, most losses sustained during the coronavirus crisis aren’t covered by business interruption policies because these plans don’t cover damage from disease and virus outbreak.

 

Typically, policies require that businesses sustain “direct physical damage” as a result of a disaster in order for a business interruption claim to be paid.

 

Business Interruption Contingency Clauses Do Too

 

In some cases, plans include a business interruption contingency clause that covers interruptions arising from disruptions in their supply chain. Contingent business interruption still generally requires the underlying cause of the interruption to have been caused by direct physical damage.

 

As a result, many insurance companies are denying claims for coronavirus-related business interruption because they do not allegedly satisfy the “direct physical damage” requirement.

 

Consequential Economic Losses Aren’t Typically Covered

 

With most plans, direct physical damage does not include consequential economic loss.  In situations where your business has been forced to shutter or limit hours — but is otherwise undamaged and uncontaminated — you may find that your insurance provider will deny your coronavirus claim due to a purported lack of direct physical loss.

 

What to Do If Your Business Interruption Claim Is Denied by Your Florida Insurer

 

What to Do If Your Business Interruption Claim Is Denied by Your Florida Insurer

 

 

Does this mean you should abstain from trying to file a business interruption claim related to the coronavirus? Again, not necessarily. Every policy is different, and whether or not your claim will be honored will depend on the specific facts and terms of your policy.

 

Given that your insurance company is likely to fight tooth and nail to avoid payout, and it’s worth reviewing the language and contractual clauses in your business interruption clauses with a knowledgeable Florida business insurance claim attorney to determine your rights.

 

 

 

About the Author:

Andrew Winston is a partner at the personal injury law firm of Winston Law. For over 20 years, he has successfully represented countless people in all kinds of personal injury cases, with a particular focus on child injury, legal malpractice, and premises liability. He has been recognized for excellence in the representation of injured clients by admission to the Million Dollar Advocates Forum, is AV Preeminent Rated by the Martindale-Hubbell Law Directory, enjoys a 10.0 rating by AVVO as a Top Personal Injury Attorney, has been selected as a Florida “SuperLawyer” from 2011-2017 – an honor reserved for the top 5% of lawyers in the state – and was voted to Florida Trend’s ”Legal Elite” and as one of the Top 100 Lawyers in Florida and one of the Top 100 Lawyers in the Miami area for 2015, 2016, and 2017.

 

0/5 (0 Reviews)
Categories
AWARDS & MEMBERSHIPS

AWARDS & MEMBERSHIPS

AMERICAS TOP 100 HIGH STAKES LITIGATORS

2018-2021

Selection to America’s Top 100 High Stakes Litigators® is by invitation only and is comprised of the nation’s most exceptional trial lawyers for high stakes legal matters. For initial consideration, an attorney must have successfully litigated (for either plaintiff or defendant) a matter (1) with at least $2,000,000 in alleged damages at stake or (2) with the fate of a business worth at least $2,000,000 at stake (i.e. bet-the-company litigation valued in excess of $2,000,000).

AWARDS & MEMBERSHIPS

LEAD COUNSEL

LEAD COUNSEL
RATED

Since 1997, the Lead Counsel Rating has been available for free to attorneys who have demonstrated the following three requirements:

Professional Experience
Peer Recommendations
Spotless Record

AWARDS & MEMBERSHIPS

LAWYERS OF DISTINCTION

LAWYERS OF
DISTINCTION

Lawyers of Distinction members have been selected based upon a review and vetting process from our Selection Committee. After a thorough review of credentials, attorneys are nominated by our Selection Committee. Lawyers do not pay for this nomination. These potential candidates who meet the criteria of our screening process have demonstrated a high degree of peer recognition and professional competence

AWARDS & MEMBERSHIPS

MILLION DOLLAR ADVOCATES FORUM
LIFETIME MEMBER

THE TOP TRIAL LAWYERS IN AMERICA ®

ONE OF THE MOST PRESTIGIOUS GROUPS OF TRIAL LAWYERS IN THE UNITED STATES. MEMBERSHIP IS LIMITED TO ATTORNEYS WHO HAVE WON MILLION AND MULTI-MILLION DOLLAR VERDICTS AND SETTLEMENTS.

AWARDS & MEMBERSHIPS

FLORIDA TREND’S

FLORIDA LEGAL ELITE
2011-2021

Now in its 13th year, Florida Legal Elite presents a prestigious roster of attorneys chosen for recognition by their peers.

AWARDS & MEMBERSHIPS

EXPERTISE BEST PERSONAL INJURY ATTORNEYS IN FORT LAUDERDALE

BEST PERSONAL INJURY ATTORNEYS IN FORT LAUDERDALE
2016-2021

Our goal is to be a hub where qualified experts can connect with people to share their knowledge, experience, and skills.

AWARDS & MEMBERSHIPS

SUPER LAWYERS

TOP RATED PERSONAL INJURY LAWYER IN DAVIE FL
2011-2021

Super Lawyers is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high-degree of peer recognition and professional achievement.

AWARDS & MEMBERSHIPS

SUPER LAWYERS TOP 100 FLORIDA LAWYERS

FLORIDA TOP 100 LAWYERS
2015-2017, 2019-2021

Super Lawyers magazine features the list and profiles of selected attorneys and is distributed to attorneys in the state or region and the ABA-approved law school libraries.

AWARDS & MEMBERSHIPS

AVVO

TOP ATTORNEY PERSONAL INJURY
10.00
SUPERB

Avvo was founded in Seattle, Washington by tech-savvy lawyer Mark Britton to make legal easier and help people find a lawyer.

AWARDS & MEMBERSHIPS

MARTINDALE-HUBBELL AV PREEMINENT

AV PREEMINENT
2016-2021

For more than 130 years, Martindale-Hubbell has been evaluating attorneys for their strong legal ability and high ethical standards through a Peer Review Rating system. Prior to the 1887 edition of Martindale’s American Law Directory, which was the first publication to provide such ratings to attorneys, there was no way of truly knowing if the lawyer you were considering to do business with was trustworthy, ethical, or skilled in the legal field.

REVIEWS

LEAVE US A REVIEW

CASE RESULTS

See More Results

Font Resize