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COVID-19 has impacted businesses of all sizes, and business owners may be wondering if they are entitled to monetary relief through insurance. Our Chicago insurance loss attorneys at Shea Law Group are right there with you; as a small business, we understand firsthand the effects of this pandemic.
If your business has been shut down altogether or you’re experiencing a major set back, lean on our team for guidance and assistance.
Business Interruption Insurance
Business interruption insurance is designed to help keep businesses up-and-running even in the face of disaster. Examples of what business interruption insurance include:
- Payroll costs and pension funding
- Overhead costs such as utility bills, mortgages, etc.
- Income and revenue losses
- Relocation costs
- Restoration costs in the case of physical property damage
The specifics of what is covered depends upon your exact policy that your business has.
COVID-19’s Impact on Perils Policies and All-Risk Policies
Covered perils insurance policies, also referred to as “perils,” cover you for only what is listed in the policy and nothing else. All-risk insurance policies cover everything except what is listed as an exclusion in your policy.
In the wake of the global pandemic, both perils policies and all-risk policies are being denied, leading to lawsuits. There are two angles that law firms are taking to help gain traction and get their clients the compensation to which they are entitled.
Loss of Business due to Civil Authority Actions
Many policies include a provision that any losses that result from civil authority actions should be covered. This includes the government and any law enforcement agencies.
Because of this, as soon as Governor Pritzker issued a stay-at-home order (originally on March 21st), it was considered a civil authority action. This means that businesses such as hair salons, gyms, nail salons, or other sports venues cannot operate.
Loss of Business due to Physical Damage to Covered Property
Insurance companies are pushing back against business owners that note that their business has sustained physical damage as the result of COVID-19.
However, because the virus can survive on its own for three days, any Chicago business would have to constantly undergo sanitization processes to ensure it is safe to enter.
Even businesses deemed essential to face the risk of infection and require remediation.
