Business Interruption Insurance Lawyers 2024
Business Interruption Insurance Lawyers
The Collins Law Firm P.C. is investigating insurers for wrongfully denying coverage of business interruption losses during Covid-19.
In the wake of the recent government-ordered shutdown of businesses across the country, insurers are denying coverage for business losses. Small businesses are particularly suffering – the insurance industry predicts that small business interruption losses could reach $431 billion per month. That makes the insurance companies nervous, because they only collect premiums of about $6 billion per month in that area of insurance.
So, it is not surprising that insurers have been telling small business owners that, even though they purchased business interruption insurance, their policies do not provide coverage in the current environment because the policies contain a “virus exclusion.” Insurers quietly started inserting these exclusions into policies after the SARS virus scare in 2003.
In some cases, however, the exclusions may not apply, especially when the business interruption is caused by government-ordered shutdowns that prevent the use of your business property. Depending on the specific policy language and circumstances of the business, it may be possible to obtain coverage for a business interruption loss even though the insurer has denied coverage.
But, you may have to sue the insurance company to make them pay. And, the last thing a small business in this situation wants to do is pay lawyers an hourly fee to pursue litigation that may or may not be successful.
This is where contingency fee litigation may make sense. Contingency fee litigation is well suited to insurance coverage disputes, and makes it possible for struggling businesses with stretched resources to pursue a potential recovery against an insurer that has denied coverage. Our firm has a history of successfully pursuing contingency fee cases and high-stakes business litigation.
Our Legal TeamLeonard HudsonLen is an experienced business litigator who has recovered millions of dollars for clients ranging from small business owners to public companies. Len has extensive experience in commercial and contract disputes as well as the retail and franchise spaces.
An outstanding trial lawyer, Shawn combines his powerful communications skills with an unrelenting commitment to his clients’ causes to win trials and secure favorable settlements. Shawn has consistently been named as one of the top 100 trial lawyers by The American Trial Lawyers Association. Shawn’s success can be measured in the results he has earned for his clients. Shawn has recovered over $100 million in trial victories and settlements on behalf of his clients.
We are currently investigating potential litigation against insurers who may be wrongfully denying coverage for business interruption during these challenging times. We offer a free consultation and preliminary review of your insurance policy to help you obtain the coverage to which you may be entitled. Call us at (630) 527-1595 or fill out our contact form here.
How is business interruption insurance treated in accounting?
Compensation for business interruption Lost profits, by themselves, do not give rise to a provision. Therefore, compensation for business interruption is not a reimbursement right under IAS 37 and should be accounted for by analogy to guidance on compensation for impairment under IAS 16 Property, Plant and Equipment.Business Interruption Insurance Lawyers
What is another name for business interruption insurance?
Issue: Business interruption (BI) insurance, also called business income insurance, helps small businesses protect against monetary losses due to periods of suspended operations when a covered event, such as a fire, occurs and causes physical property damage.
What are the scenarios for business interruption claims?
Business interruption insurance covers the income lost during the restoration period. Utility Failures: Power outages, water supply disruptions, or gas leaks can impact your business’s ability to operate. Business interruption coverage compensates for the loss of income during these utility failures.Business Interruption Insurance Lawyers
What are probably the most common cause of a business interruption?
Fire and flood are two of the most common reasons for a business interruption, but you can do your best to protect against both by following best practice.
What is non damage business interruption insurance?
Non damage business interruption insurance (NDBI) Covered loss can include loss of gross margin and direct expenses, such as remediation costs, extra expenses such as destruction costs, regulatory investigation costs, recall cost and direct loss of market share.