Insurance companies have already been denying these types of corona virus related business interruption claims!
The Covid-19 global pandemic was unforeseen and has caused many states and municipalities to limit or shut down all “non- essential” businesses. Business owners are forced to close their doors and are losing money every single day with no clear end in sight. Owners and operators of these businesses may be looking to their business interruption insurance policy for much needed relief. But Policies are written in legal terminology which make it difficult for non-lawyers to full understand. That is why Torrey Pacific Law offers a free consultation to help you make sense of your policies guidelines and know if you have a claim.
Many insurance policies include coverage not only for property damage but for loss profits resulting from that damage as well. The main argument between business owners, insurance companies and the politicians is whether corona virus can cause property damage and if it played a role in a loss of income.
Previous cases like Gregory Packing, Inc. v. Travelers Property Cas. Co. of America, have found that harmful substances at or on a property can constitute property damage. These types of ruling (this one in a New Jersey federal court, 2014) can make a strong argument that insurance companies are in fact liable for paying out on Covid-19 of claims because “properties can sustain physical damage without experiences structural alterations”.