Top Rated Business Interruption Claims Lawyers in Colorado

The economic fallout from the COVID-19 pandemic has led companies in nearly every industry to search for ways to replace the revenue they’ve lost. Multinational corporations and mom-and-pop stores alike are asking if their business-interruption coverage might pay for at least some of the financial harm. As in all insurance matters, the relevant coverage language is critical, so it’s important to take a close look at your policy and consult a qualified attorney about a potential claim. Observers and even some government officials have cast doubt on the viability of these claims unless the impact of widespread disease is specifically mentioned in the policy terms.

As states and cities have forced businesses to halt or drastically alter their operations due to the novel coronavirus, it is natural to look for relief under policy provisions addressing civil authority closure. Generally, these provisions seem more suited to situations where municipalities order businesses to close due to a natural disaster or civil unrest. One of the key elements in these claims is the existence of property damage to a nearby business. Recovering lost business income might not be possible if business closure or curtailment is the only damage.

In addition to reviewing your business policy, it’s important to pursue the other types of relief that might be available. Already, the uniqueness and enormity of the COVID-19 pandemic has triggered legislation designed to address some of the pandemic’s economic effects. Efforts such as the Paycheck Protection Program and expansion of the Economic Injury Disaster Loan program give companies a chance to recover revenue outside of the insurance system. Some state legislators are looking to pass bills holding that business interruption coverage should apply to pandemic-related financial harm, though many other officials disagree.

Unlike other disastrous events in the past few decades, such as the Los Angeles riots, September 11th attacks and Superstorm Sandy, the financial losses due to COVID-19 are not limited to a city or even a region. Industry executives and government authorities have stated that standard business interruption policies do not cover pandemics and that allowing such claims could cause massive harm to insurers. Each situation is unique, however, and obtaining advice from a knowledgeable attorney will help you understand your rights under your particular business interruption policy.