Lieff Cabraser Civil Justice Blog
Companies Denied Business Interruption Insurance Claims Due to COVID-19 Outbreak Battle The Insurance Industry

Companies Denied Business Interruption Insurance Claims Due to COVID-19 Outbreak Battle The Insurance Industry

The Washington Post reports that as mandatory isolation orders have caused the shutdown of businesses across the nation, a multibillion-dollar deadlock has arisen between the nation’s leading insurers and the companies that purchase their business interruption insurance policies. The heated battle between the groups hinges on the question of whether insurance providers should have to pay claims to businesses that have shuttered as a result of the Coronavirus outbreak.

The Post notes that the insurance industry’s most powerful lobbyists, led by the American Property Casualty Insurance Association (APCIA), argue that business interruption policies were never intended to cover contagions. But business owners who have faithfully paid costly premiums for decades feel they have been actively misled and face dire financial straits if their business insurance claims are denied. Indeed, they note that the very purpose of business interruption insurance is to protect companies from suffering major financial loss when they are forced to shut down or suspend operations.

So far, the largest group to oppose the insurers has been the hospitality industry, including top chefs and restaurateurs who have begun a passionate legal fight and lobbying campaign. Parallel efforts have also emerged, including an early push by Rep. Brian Fitzpatrick to force insurers to pay businesses disrupted by the coronavirus and another by Rep. Mike Thompson that would ensure that future business interruption coverage includes pandemics.

Learn more about Lieff Cabraser’s representation of restaurateurs improperly denied business interruption insurance on our COVID-19 Insurance Claim Denials Litigation web page.

You can also read the full article on The Washington Post’s site.

Contact a Business Interruption Insurance Denial Attorney

While some insurers are showing extraordinary compassion and flexibility in responding to virus related claims, other insurers are refusing to pay business interruption claims despite restaurants having faithfully paid costly premiums for decades. We think this is wrong, an atrocity that threatens to decimate America’s most beloved restaurants.

If your restaurant’s business interruption insurance claims have been denied after the government-ordered shutdown of all or part of your business, then contact a Business Interruption Insurance Denial attorney at Lieff Cabraser today using the form on this page to start the conversation and learn how you can get justice and recover for your losses.