Virtually every business in Ontario has been impacted by the Coronavirus pandemic in some way or another, and many have experienced significant financial losses that could put their future operations in jeopardy. Unfortunately, many business interruption (BI) insurance carriers have rejected all claims made by policyholders for COVID-related damages instead of supporting the businesses who have dutifully paid premiums for year.
Since Orillia Coronavirus business interruption insurance denials have been so common, filing or joining a mass tort claim against your insurer may be the best way for you to obtain the compensation you’re entitled to. A consultation with one of our class action lawyers could help you understand your legal options and what the best course of action would be for your situation.
Business interruption insurance is meant to protect policyholders in the event that an unexpected disaster forces them to shut down their business and forego much-needed income. After a covered event like a fire, flood, or other natural disaster, BI insurance may provide compensation for expenses related to property repair, lost revenue, employee wages, and more, depending on the specific policy.
However, the COVID-19 pandemic has exposed a crucial loophole in many such policies – specifically, the requirement that a disaster must cause some form of physical damage to a policyholder’s business in order for coverage to kick in. While it could be argued that the presence of a deadly virus in a retail store or restaurant could constitute damage to the property that must be remedied before the business can reopen, the vast majority of insurers have been unsympathetic to that argument thus far.
Some policies even go so far as to explicitly name viral pandemics as exceptions to business interruption insurance coverage, meaning policyholders have virtually no means of directly pursuing compensation for Coronavirus-related losses through their existing policies. Understanding the exact reason for your COVID-19 business interruption insurance denial is usually critical to determining what alternative legal options may be available in your situation.
The options you have for contesting a Coronavirus BI insurance claim denial are going to vary based on the terms of your specific policy. Unless you can prove that your business’s COVID-related damages meet the strict requirements for coverage set by your BI policy, you may have a tough time recovering compensation through traditional means.
Fortunately, there is growing momentum behind several class action lawsuits against business insurance providers who have failed to act in good faith toward policyholders in our area. A qualified Orillia lawyer could discuss in further detail whether you’re eligible to start or join a mass tort claim to contest your Coronavirus BI insurance denial.
When the primary reason for your BI insurance denial seems to be a bad-faith interpretation of what constitutes a “disaster,” filing a claim against a massive coverage provider with the help of a lawyer could increase your chances of recovering what you ostensibly paid for in premiums.
Anyone who recently experienced an Orillia Coronavirus business interruption insurance denial should consider speaking with a legal professional from our firm about their options. To schedule a consultation about your potential case, call Rastin Law today.