What to do if your business interruption insurance claim is denied

What to do if your business interruption insurance claim is denied

The response to COVID-19 has turned our world upside down, including closing businesses for long periods and cancelling special events.  If your business was forced to shut down due to government orders during the pandemic, you’ve probably lost significant revenues and some or all of your staff.  The future can feel very uncertain.  Business interruption insurance might provide some protection, but you may be asking yourself what to do if your business interruption insurance claim is denied.

Unfortunately, many claims are being denied and business owners are left with their backs against the wall.  If this describes your situation, it may be time to hire an attorney and get tough with your insurance company.  At Guajardo & Marks, our attorneys help with insurance claims.  Rather than getting lost in the shuffle of businesses clamoring to get their insurance company’s attention, hiring an attorney can put you at the front of the line and show your insurance company that you mean business.  In almost all legal matters, people represented by attorneys achieve better financial outcomes.

If you’re looking for an aggressive attorney to go toe-to-toe with your insurance company and demand that they step up to cover your losses, the lawyers at Guajardo & Marks are a perfect choice.  Our years of experience and skill pay off for our clients.  To learn more about how we can help, call us at 972-774-9800.  The initial consultation is free.

What if your event cancellation insurance claim is denied?

From music concerts to weddings to summer festivals, events are being cancelled right and left across the nation.  Texas has seen its own share of cancelled events, including Comicpalooza 2020, Galveston County Fair and Rodeo, IRONMAN races, Oak Cliff Film Festival and concerts by Michael Bublé and the band Journey.  This means lost revenues for restaurants, performers, caterers and retail businesses, as well as multiple broken service contracts.  Almost every community across Texas has street festivals, outdoor art fairs and craft beer fests that have been called off or postponed indefinitely.

Business interruption insurance is designed to protect businesses and vendors from sustaining massive losses due to unexpected cancellations.  However, because the U.S. has not experienced a pandemic on the scale of COVID-19 in modern history, insurance companies are overwhelmed with claims and are looking for ways to avoid paying them.

If you have filed a claim because your event was cancelled, you are lucky if your claim was approved.  On the other hand, if your event cancellation insurance claim was denied, you may need the help of an aggressive lawyer to get the decision reversed.

It’s frustrating if your business interruption claim is denied.

Most insurance companies around the country have taken the position that business interruption losses due to the coronavirus pandemic are not covered under typical commercial insurance policies.  The insurance companies are issuing blanket rejections of any claims caused by COVID-19, saying the losses caused by the virus do not satisfy the required “direct physical loss or damage.”  All of this is uncharted legal territory, because America and the world have never seen a pandemic like this and the resulting catastrophic business losses.

At Guajardo & Marks, we take the position that businesses’ claims cannot be denied without a thorough investigation and appropriate legal analysis.  Across-the-board denial of business interruption claims is just a way for insurance companies to avoid paying out appropriate levels of compensation.  After all, your business has paid the insurance premiums for months or years, and coverage should be available to you in your time of need.  Rather than being frustrated, take action.  To learn more about how our attorneys can help, call us at 972-774-9800.

Steps to take if your event cancellation claim is denied

The law around business losses due to COVID-19 is not that clear, and it is changing fast as lawmakers and business leaders become involved.  The attorneys at Guajardo & Marks know how to challenge the denial of a claim and build a powerful legal case on your behalf.  We stay abreast of changing interpretations of the law, and we are watching national trends closely as more and more small businesses cry foul after being denied business interruption and event-cancellation claims.  We remain at the forefront of this legal battle.

If your claim has been denied, here are some steps to keep in mind:

  1. Gather copies of your business interruption or event-cancellation insurance policy.
  2. Keep track of the number of times you’ve contacted your insurance company and the substance of the conversations or emails.
  3. Keep meticulous bookkeeping and accounting records of your commercial rent and expenses, vendor contracts, and financial losses due to the virus.
  4. Stay abreast of state mandates about when your business was ordered to close and when it may reopen.
  5. Hire a skilled attorney who is willing to fight your insurance company for the compensation you deserve.

These are uncertain and stressful times, and the more documentation you have to back up your claim, the better.  Be as specific as possible about costs, contracts, deadlines, and financial losses.  While traditional interpretations of business-interruption insurance coverage may be the norm, litigants around the country are creating novel and creative interpretations in an effort to establish coverage for their businesses.  We can do the same for you.  Very few courts have ruled on these cases yet, and there may be future governmental interventions.  A skilled attorney can keep you up to date on all these legal changes.

Contact a skilled Dallas attorney who can fight your insurance company.

If your business-interruption claim is denied, it may be time to hire an aggressive attorney who can forcefully negotiate with your insurance company to secure compensation.  Thousands of business closures and cancelled events are happening all over Texas, and insurance companies are being overwhelmed with claims.  To make sure that yours is one of the claims that gets paid, hire a skilled and tough lawyer at Guajardo & Marks.  We won’t rest until you receive the justice you deserve.  To learn more about how we can help, call us at 972-774-9800.  The initial consultation is free.