Thousands of businesses across the province of Ontario have been forced to temporarily close since the Coronavirus pandemic began – either due to the government mandate for non-essential businesses to shut down or simply in the interest of protecting employees and customers. While necessary for the preservation of public health, those decisions have equated to billions of dollars in lost sales and revenue, and many companies are turning to business interruption insurance policies to recover some of the losses brought on by COVID-19.
Unfortunately, even though many business owners paid steep premiums for their business interruption (BI) insurance, many coverage providers are refusing to pay out on claims related to Coronavirus closures. If you experienced a Midland coronavirus business interruption insurance denial, it may be wise to talk to a class action lawyer at Rastin Law about your options for joining a case against the insurance company which is refusing to honour your claim.
The basic premise of business interruption insurance is that an insurance company will offer financial security and protection to business owners in the event that a disaster forces them to close their doors in exchange for the payment of regular premiums. Typically, these policies are meant to cover events like floods, fires, major storms, and other such events that force a business to close based on government orders or for repairs.
Unfortunately, COVID-19 has been difficult for insurance companies to categorize despite the catastrophic effect it has had on businesses in our area. Many insurers have rejected BI claims because, unlike a fire or natural disaster, the Coronavirus does not cause physical damage to the property of policyholders, meaning that property owners have no grounds to seek relief through BI insurance. Other business interruption insurance policyholders have discovered at the worst possible time that their BI insurance policy specifically names viral pandemics as exempt from coverage.
The legal options available to Midland business owners who have had a Coronavirus business interruption claim denied will vary depending on the terms of each company’s insurance policy. An Ontario Court has already ruled in favor of policyholders seeking business interruption coverage for events that did not actually damage their property, but that ruling was based on the verbiage of the plaintiff’s particular policy, so the extent to which this verdict would apply to various COVID-19 claim denials remains open to debate.
Depending on the circumstances of your case, the best option may be to start or participate in a class action lawsuit against a particular insurer for operating in bad faith during an unprecedented pandemic. Multiple such claims have already named various major Canadian business interruption insurers – including Aviva Canada, Desjardins, and Economical Insurance – as defendants. These cases are still in their early stages, so the final outcome is yet to be determined. A qualified Midland lawyer from our firm could discuss with an individual business owner what the best course of action may be in their particular situation.
Coronavirus has fundamentally changed the economic landscape both in Canada and all over the world, and many Midland business owners are struggling to recover from revenue lost due to COVID-19 closures. Unfortunately, business interruption insurance providers have been little help during this crisis, denying virtually every claim made by policyholders related to the current pandemic.
If your Midland Coronavirus business interruption insurance claim was denied, you may still be able to pursue compensation by working with a knowledgeable mass torts lawyer. To schedule a consultation and discuss your unique circumstances, call Rastin Law today.