As the economic toll of the COVID-19 pandemic mounts, businesses are examining their commercial insurance policies to see if there is coverage for business losses. Many are being told by the insurance industry that their business is not covered when, in fact, some policies do provide a measure of relief. For most insured businesses, the coverage most likely to respond to a COVID-19 loss is that for Business Interruption (B.I.). The intent of business interruption insurance is to indemnify a business for its loss of profit and additional expenses as a result of an insured peril.
A strong and experienced team of solicitors and barristers makes up PanLaw’s Business Interruption response team. With experience of assisting clients with business interruption events prior to the widespread business interruption arising from COVID19, as well as experience in challenging denials or limitations of cover by insurers, the team is committed to assisting clients with matters arising out of the COVID19 business interruption events and are able to advise either by phone, in writing or via video conference.
Policy wording differs greatly between the different business interruption coverage in insurance policies. Our legal teams are fully aware of the arguments put forward by insurers seeking to avoid or limit claims and the counter arguments put forward by the insured policy holders.
Success of a claim through commercial property policies and business insurance extensions therefore depends on ensuring that each element of the policy claim criteria is fully met and evidenced: including how COVID19 resulted in the loss of income; the extent of the loss; showing necessary property damage or professional obligations or regulatory requirements to close businesses; how businesses have attempted to mitigate losses; consequential costs claims; and the multitude of other matters that may need to be considered.
Many of the PANLAW B.I. team have had experience in drafting and analysing insurance policies and representing both insured parties and insurance companies in litigation and can bring both a unique perspective and a deep practical experience to these cases. They appreciate that initial denials can be highly stressful events for those hoping to rely on their insurance policies.
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