The last few months have been incredibly difficult for business owners across Ontario thanks to the Coronavirus pandemic. Between government-mandated closures and precautions taken to protect workers and customers alike, many businesses in our area have experienced significant financial losses due to lost revenue and additional operating costs.
Unfortunately, even though so many industries have been interrupted recently, business interruption insurance providers have failed to pay out on most claims made for losses related to the pandemic. If you have experienced a Coronavirus business interruption insurance denial in Collingwood, a seasoned class action lawyer could help you join a mass tort claim with other affected business owners.
Business interruption insurance providers give numerous excuses for rejecting claims related to the Coronavirus pandemic, many of which are based on a specific contextual reading of policy language. For example, the “force majeure” clause of most insurance policies exempts coverage providers from liability if circumstances outside their control make it impossible to fulfill contractual obligations.
Other claims have been rejected because, in the eyes of coverage providers, business interruption insurance policies are only meant to cover disasters like fires and floods that cause physical property damage. COVID-19 technically does not qualify under those standards because it does not cause property damage. In fact, many policies specifically name viral pandemics as exceptional circumstances that do not trigger business interruption coverage.
Regardless of the reason for an insurance denial, the result is business owners being left without any means of recourse for the losses their business suffered because of a situation completely outside their control. Accordingly, many policyholders are looking to explore other options for pursuing the insurance coverage they thought they were paying for.
With help from a qualified trial lawyer, it may be possible for an individual business owner in Collingwood to successfully appeal a claim denial for losses they suffered as a result of the Coronavirus. Many insurance policies are intentionally confusing and hard for policyholders to comprehend, so let a seasoned legal professional help establish whether a claim denial was based on a bad-faith interpretation of policy language.
Alternatively, some business owners in our area have started pursuing class-action litigation against the insurance providers who rejected their claims. Since many of these cases are still getting off the ground, it is unclear how courts will ultimately rule on them, as well as how the ongoing pandemic may continue to affect business interruption insurance providers and policyholders. Speaking with a local lawyer could help business owners understand what to expect in the aftermath of a business interruption insurance denial.
For business owners who lost revenue because of Coronavirus-related closures or expenses, business interruption insurance coverage has not been as dependable as they might have expected.
A knowledgeable lawyer from our firm could help you challenge your claim denial or join other claimants in a mass tort or class-action lawsuit against bad-faith insurance providers. To schedule an initial consultation, call Rastin Law today.