Recently, businesses suffered greatly as most owners closed their doors during the COVID-19 shutdown, and then, started opening once protests begun for the Black Lives Matters movement. It was one devastating loss after another for most entrepreneurs, and most owners already anticipate closing their shops permanently.
However, some business owners want to fight for coverage for their losses through their pre-existing insurance coverage. But ABC News reported drastically different responses for owners seeking compensation for COVID-19 or destruction due to looting.
Pandemic or Protests?
Many policyholders found that their companies covered damages due to vandalism or looting, but refused to cover the more extensive losses from the shutdown. Many insurance policies for businesses do not cover the situation of a pandemic or widespread virus.
Now, many of those same entrepreneurs are dealing with damages from the protests and can’t receive the compensation they need to get their companies back up and running. There is even a small chance that most businesses didn’t suffer physical vandalism, but still suffered losses due to closures or other reasons.
Amy Bach, of United Policyholders, told ABC News that these insurance companies need to start evaluating every company’s claim instead of denying everyone outright. She even questions the validity of these policies.
“We all want to feel like insurance is worth paying for, and when you have a situation like COVID it makes a lot of businesses wondering: why was I paying for insurance all these years when I’m teetering on losing my business entirely, and my insurance telling me it’s not covered?” she told ABC News.
It begs the question of what can business owners do when their coverage is interrupted or severely hindered due to COVID-19. It’s critical to consult with representation that can review your policy and see if you have a case to expedite your coverage.