If your business has been affected by the coronavirus, you might have trouble affording payroll or even keeping your business from being evicted from your commercial lease. Many businesses might have trouble claiming business interruption damages from their insurance company if the insurance company refuses to cover COVID-19-related closures. In many cases, these kinds of denials are illegitimate and might lead to claims of bad faith insurance or breach of contract.
For help litigating your claim, call The Queenan Law Firm today. Our Houston COVID-19 business interruption claim litigation attorneys work to fight denials and file claims against insurance companies to help our clients get the coverage they deserve. For a free legal consultation on your potential case, call our attorneys today at (817) 476-1797.
Fighting Denials of Business Interruption Claims Related to Coronavirus Closures in Houston
Closures from coronavirus are usually based on one of two issues: either you or your employees got sick and you had to close because of it or your business closed as a non-essential operation during a government-mandated closure. Insurance companies might deny these kinds of claims on various grounds, which might entitle you to a lawsuit to enforce the coverage you need.
If your business closed because of illness at work, your insurance carrier might refuse to cover payments because there is no physical damage. Many insurance claims for business interruption are based on damage to the premises from fire or other damage to the property. Without physical damage, some insurance policies are not triggered. However, other clauses, such as a clause covering closure by government order, might work instead
Another common issue occurs when policies have clauses specifically excluding coverage for viruses or illnesses. In some cases, the policy might specifically say that it will not cover financial harms for closures caused by illness. However, if your business is on hold because it was closed by government order rather than actual illness at work, then it might be covered by other clauses.
If any of these clauses are ambiguous or appear to contradict each other, the court will have to resolve those issues. The reason your insurance carrier denied your claim in the first place might be because of these ambiguities. Our attorneys will fight to get the court to interpret the insurance policy in your favor and rule that the insurance company must pay you for the damages they owe you.
Lawsuits Against Insurance Companies for Coronavirus Business Interruption Claims in Houston, TX
If your insurance company refuses to cover payments for business interruption, you might be entitled to file a lawsuit against them.
In some cases, a lawsuit will be based on a breach of contract claim. An insurance policy is a contract, and the insurance company is required to pay you according to the terms of the policy. If they have a good-faith argument that your situation is not covered by your policy, they might refuse to pay. This argument might be based on ambiguities or contradictory terms. If that is the case, courts can often help resolve these ambiguities. Contracts are generally interpreted against the person who wrote it, which might mean that confusing language could be interpreted in your favor.
In other cases, the argument that the insurance company puts forth will not be a good-faith argument about the terms of the contract. Instead, they will simply refuse to cover your payments or make other excuses. Insurance carriers have an obligation to deal in good faith, and failing to make a good faith effort to fulfill their obligations can open them to liability. When you sue for bad faith insurance, the court will rule in your favor if the insurance company has no good excuse for failing to pay you what they owe you.
Damages for Business Interruption Claims Based on Coronavirus in Houston
If you sue your insurance carrier and get compensation for the business interruption costs you suffered, the specific damages you receive will be based on your insurance policy and the damages you suffered. If your business had to close because of coronavirus, it might have been very sudden. This might leave contracts unfulfilled, inventory that you cannot move, employees that you cannot pay, and rent and operating costs that you cannot cover if you are not making any money. Business interruption claims usually cover most of these costs, but the specifics of how much will be covered depend on the terms of your insurance policy.
If you have to take your insurance carrier to court to get the relief that you were contractually entitled to, you might also be entitled to additional damages. Sometimes, severe trends of bad faith and serious issues of malfeasance can lead a court to order punitive damages. These additional damages punish the defendant by forcing them to pay the plaintiff additional money as a penalty. Moreover, you might be able to collect money for the additional consequential damages you suffered, such as additional expenditures you made or loans you had to take out to cover the money that the insurer should have paid you. You might also be able to claim attorney’s fees and other damages.
Call Our Houston, TX Insurance Litigation Lawyers for Businesses Impacted by the Coronavirus
If you operate a business in the Houston area, you might be unable to continue operations because of the coronavirus If your insurance company refuses to pay business interruption damages, our Houston COVID-19 business interruption claim litigation attorneys might be able to take them to court and fight to get you the insurance payments you deserve. For a free legal consultation, call The Queenan Law Firm today at (817) 476-1797.