If you own a business in Michigan, then you’ve probably already heard—your insurer isn’t going to cover your business interruption claim for the losses you suffered due to COVID-19. You’ve also probably heard many business owners ask this question: “What’s the point of having business interruption coverage if it cannot be used when operations are interrupted, and your flow of revenue is disrupted?”
If you have and are wondering why business insurance carriers aren’t covering claims filed for COVID-19 losses, read on below.
Is it an excuse or an exclusion?
While insurers across the nation claim that the policies they offer contain exclusions for pandemics, viruses, and bacteria, many business owners believe they aren’t receiving the coverage they have paid for. In fact, CNBC reported that some insurers are even denying coronavirus-related claims from restaurants even if they do not have those exclusions written in their policies. So, what it is? Are insurers looking for an excuse to get out of paying claims that could cause many smaller carriers to go bankrupt or are pandemics uninsurable?
The answer depends on who you ask.
If you ask an experienced Michigan insurance claims denial lawyer, they may say you do, in fact, have coverage for COVID-19 losses. However, if you ask David Sampson, the American Property Casualty Insurance Association’s president and CEO, he says “pandemic outbreaks are uninsured because they are uninsurable” [Source: Chicago Tribune]. Whether insurers are denying COVID-19 claims so that they are able to save their $800 billion surplus from becoming depleted or it’s because they simply do not offer coverage that extends to pandemics, that is debatable.
But an important question that still needs to be addressed is: How should a Michigan business owner respond when their insurer denies their COVID-19 claim?
One way a business owner in Michigan can respond to a denied business interruption claim is by retaining an insurance claims attorney in Michigan who is familiar with the laws that govern the insurance industry. Why? Because an insurance lawyer has the ability to read through your policy, assess the nature of the claim, and determine if coverage is warranted. In the event it is, but your insurer has denied your claim, then there are certain steps that can be taken that might encourage your insurer to comply.
For instance, the Michigan insurance claim denial lawyers USAttorneys.com can put you in touch with may either file an appeal against your insurance carrier or go a step further and file a lawsuit. it all comes down to what they feel is the best course of action.
Now, if you would like to speak with a reputable insurance claims lawyer in Michigan regarding your denied business interruption claim, contact USAttorneys.com.