South Carolina Restaurant Owner Denied Business Interruption Coverage for COVID-19 Losses

The owner was told his policy only covers natural disasters and acts of God.

After John Keener was forced to shut down his four Charleston restaurants as a result of the COVID-19 outbreak, he assumed he’d be able to recoup some of the lost income by filing an insurance claim under his business interruption insurance policy. Keener, who made it through similar shutdowns in the past, including those caused by Hurricane Irma and Matthew, was able to get his business interruption claims approved quickly during that time so he thought nothing of it when he filed a COVID-19-related claim.

Unfortunately, rather than receive a check from his insurer, he was instead, informed that his claim was denied. The restaurant owner’s insurer told him that “his policy does not cover pandemics—only natural disasters and acts of God.” But Keener told The Post and Courier that he believed COVID-19 falls into the “act of God” category. Sadly, Keener isn’t the only business owner in South Carolina who has been denied coverage for COVID-19-related shutdowns.


Black Magic Café Owner Sues Insurer Over Denied Business Interruption Claim


The Post and Courier also reported that a café owner with two locations in Charleston, South Carolina has filed a lawsuit against their insurance company, Hartford Financial Services Group, and its subsidiary, Twin City Fire Insurance Co., after the company denied their business interruption claim. The café owner filed their first claim on March 24th which was denied and followed that up with an appeal. The appeal was filed by the owner’s attorney and was also denied.

The café owner decided to file a breach of contract lawsuit in federal court in Charleston after their claims were rejected despite them having coverage. While a large percentage of business interruption policies include exclusions for things like viruses and pandemics, Black Magic’s owner says their policy contains no such exclusions. The café’s lawsuit is believed to be one of the first in the area to challenge their business interruption denial, reports The Post and Courier.


Should I hire a South Carolina insurance claims denial lawyer if my insurer denied my COVID-19 business interruption claim?


It might be in your best interest to do so. Insurance companies across the nation are refusing to provide coverage to business owners for business losses suffered as a result of the COVID-19 pandemic, even when policies do not specifically exclude pandemics. In order to get the coverage you are entitled to, you are going to need an aggressive South Carolina insurance claims denial attorney advocating for you. Finding dependable South Carolina insurance claims denial lawyers in the midst of all the chaos can be difficult to do which is why you should consider letting USAttorneys.com help you.

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