A special type of insurance helps with business interruptions like COVID-19 closures: How to ensure you’re taking full advantage

Feeling lost in the wake of coronavirus? A lawyer just might be exactly what you need

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Orlando businesses are struggling with an unprecedented, mass economic uncertainty, as they grapple with the aftermath of forced closures, and tourism that’s been nonexistent for months.

Even though life is beginning to normalize, many companies are reopening and things appear to be getting back on track, many businesses suffered major losses in the coronavirus pandemic.

Perhaps these days are still marked with furious accounting, as you project the future of your business and the viability of remaining in business, for how long, and with what cost, in terms of lay-offs and other concessions.

That’s incredibly hard.

Isn’t there something that can help?

Many businesses have turned to their commercial Business Interruption Insurance for some financial relief in this crisis, only to discover that their policies do not cover losses during a pandemic like COVID-19.

What do you do in a case like that?

It might be worth consulting with an Orlando business interruption lawyer, said the experts at Bogin, Munns & Munns, a full-service law firm founded 40 years ago in Orlando.

What exactly happened?

Considering the start of COVID-19 in the United States was just earlier this year, you likely don’t need the reminder.

COVID-19 stunned the world -- on a literal global scale and right here at home.

Seemingly from one day to the next, life as we knew it changed in just about every way imaginable. State and local governments ordered non-essential businesses to close, and even those qualified as “essential” suffered financial impacts as local economies and business slowed — or, for some, ground to a complete halt.

For many companies, the prospects of recovering financially from their business losses look grim.

Those that survived, still might face the possibility of future financial burdens if and when additional waves of the virus surface.

Nobody seems able to predict with any confidence or consistency when businesses will begin to stabilize — or how long that stability will last.

That’s where Business Interruption Insurance kicks in

This is a type of insurance coverage that replaces business income lost as a result of a business interruption event.

It’s sometimes called Business Income Coverage or Time Element Coverage, but it’s typically the same thing -- and often included in a business’s Commercial Property Policy.

All policies vary, to some degree, but generally, your business will be entitled to normal continuing expenses plus gross profit (before taxes are taken into consideration); and extra expenses incurred because operations were suspended.

One more piece of the puzzle

If you’re a business, you likely want to make sure you can take advantage of any Business Interruption Insurance you might have. But how?

An Orlando business interruption lawyer can review your insurance policy’s terms of coverage and advise you of your eligibility for coverage, said Travis McMillen, a board-certified trial attorney with Bogin, Munns & Munns who serves as the expert for this practice area.

If you’re not sure about your eligibility, a lawyer can join other attorneys fighting for coverage on behalf of their clients.

Bogin, Munns & Munns, for example, offers a free case evaluation about your business interruption case.

All the reasons to leave this one to the experts

All this mass economic uncertainty continues to swirl. Some business owners have looked into the idea of turning to their commercial Business Interruption Insurance, to try to get some financial relief.

Some have discovered that their policies do not cover losses during a pandemic like COVID-19, McMillen said.

This is where a business interruption lawyer can assist and help determine next steps.

“Rather than mire yourself in the headache of your business interruption coverage, consider letting (the pros) handle it for you,” McMillen said.

Even if your claim has been rejected -- which is happening more and more often, the experts said -- McMillen advised that the team can review the claim to determine why it was denied.

And if it was wrongfully denied, “your insurance company may be acting in bad faith and we can help to hold them responsible,” he added.


Learn more: Bogin, Munns & Munns


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