As a loyal policyholder who has paid for their business interruption insurance coverage month after month and year after year, you would expect your insurer to treat you fairly by paying any claims you submit for covered losses. Unfortunately, many business owners in New Mexico are learning just how “reliable” and fair their insurance companies are after they filed a claim for COVID-19-related losses, and had it denied.
Business Owner in New Mexico Strikes Back After Insurer Denies Their Business Interruption Claim
PR Newswire recently reported that a restaurant and bakery located in Las Cruces, New Mexico has filed a class-action lawsuit against its insurer, Continental Casualty Company, which is a subsidiary of CNA Financial Corporation. The owner is accusing its insurer of failing to “honor its insurance contract and pay on the restaurant’s business interruption, civil authority, extra expense, and “sue and labor” coverages.” In the lawsuit, the business owner is requesting that the court do the following:
- Determine whether Continental wrongfully denied all claims based on COVID-19.”
- Decide if “the insurance contract applies to a business suspension caused by COVID-19 and whether Continental breached the insurance contract by denying all claims based on business interruption, income loss, or closures related to COVID-19.”
Should I take my insurance company to court if I received notice that my business interruption claim was denied?
If your business has suffered a significant loss of income due to the COVID-19 pandemic and your insurance company has informed you that you do not have coverage that extends to pandemics, you should consider obtaining a second opinion from a New Mexico insurance claim denial lawyer. There are several types of insurance coverages (i.e. business interruption, civil authority, extra expense, etc.) that you might be entitled to use to help your business get over the financial hurdle it has encountered, but your agent isn’t going to let you know that.
Rather than provide business owners with the financial help they need to save their business from going under, most would rather deny their business interruption claims to save themselves.
So, if you think you are entitled to coverage under your business interruption policy, which would provide you with (1) revenue lost due to the closure, (2) fixed expenses, such as rent and utility costs, and (3) expenses of operating from a temporary location, then it’s time you contact a New Mexico insurance claims lawyer in your city. USAttorneys.com works with some of the best insurance attorneys in the field and can get you connected with a legal expert who can review your policy and determine if coverage is warranted.