Business owners across the U.S. are fighting to keep their businesses afloat as a result of the COVID-19 pandemic. While some have managed to pull in little revenue during government closures, others haven’t made a penny in weeks. With bills still generating and no revenue coming in, business owners are desperately searching for financial relief but can’t seem to find it anywhere. And they are becoming rather frustrated because of it.
The co-owner of Cycle Bar in South Jordan, Utah expressed to KSL TV how frustrated he has become after learning his insurance company wasn’t going to cover his business interruption claim. Business interruption insurance, as you may already know, is supposed to compensate you for losses incurred as a result of your business operations being disrupted. Many policies also include civil authority provisions that provide businesses with coverage when access to their property is prevented by a civil authority (i.e. the government).
However, insurers are saying that in order to utilize business interruption or civil authority coverage, a business owner’s property must have suffered physical damage. Although many owners argue that their property did, in fact, suffer physical damage as a result of the COVID-19 virus, insurers are refusing to cover these types of claims.
Co-Owner of Cycle Bar in Utah Says Insurer Immediately Denied His Business Interruption Claim
While Smith had hoped his business would be “okay” seeing that he had business insurance which contained a “specific clause that covers “business interruption,” he told KSL TV that his claim was immediately denied after he submitted it. His insurer, The Hartford, cited in the denial that “coronavirus did not cause property damage.”
Smith told the news source that he has been paying his premiums all along “so why shouldn’t [his insurer] pay the claim?” Because Smith isn’t the only business owner in the state of Utah that is unable to recover funds from his business interruption insurance policy, the news source reached out to Utah Insurance Commissioner Todd Kiser to get his take on the topic.
Kiser said that at around the time when the SARS outbreak occurred, “insurance companies started being more careful with their policy wording about business interruption.” He explained that “there has to be a triggering event, something in time that happens a moment there is a direct, physical, specific loss associated with the claim.” Kiser also said that “the county forcing businesses to close does not count as a physical event.”
KSL TV mentioned that reporters also reached out to Smith’s insurer, The Hartford for comment but they did not have one to provide.
Was your business interruption claim denied?
As frustrating as it may be, you should know that there are steps you can take to address the issue and it starts by consulting with a Utah insurance claim denial attorney. USAttorneys.com workers closely with the best Utah insurance claims denial lawyers and would be happy to help you locate one now.