The Coronavirus and Business Interruption Claims

Legal Guidance About Your Alabama or Florida Insurance Claims or Disputes

With the Coronavirus Covid 19 Pandemic shutting down businesses all over the country, including Alabama and Florida, many persons and businesses may be wondering about business interruption coverage.

Business interruption insurance may provide coverage for income losses from the coronavirus shutdowns or other interruptions due to Covid-19. But unfortunately, insurance carriers may deny benefits to its insureds as this is a new area of claims.

Over the last twenty (20) plus years Milam & Milam has successfully handled insurance claims, disputes and bad faith claims against insurance companies, and we can put that experience to work during this pandemic.

Routinely purchased as part of a business’s commercial property insurance package, business interruption insurance is intended to protect businesses against income losses sustained as a result of disruptions to their operations.

In many commercial property insurance policies, business interruption coverage is triggered when the policyholder sustains "direct physical loss of or damage to" insured property by a covered cause of loss. In the event of a claim for coronavirus-related business interruption, certain insurance carriers may dispute whether this "physical loss" requirement has been met.

Policyholders should keep in mind, however, that courts across the country have not settled upon a uniform rule for when insured property has suffered a "physical loss." Courts in a number of jurisdictions have determined that contamination and other incidents that render property uninhabitable or otherwise unfit for its intended use constitutes a "physical loss" sufficient to trigger business interruption coverage.

The determination of whether "physical loss" has occurred under your policy will therefore require a close examination of the particular facts and the particular policy of your case.

Other specialized insurance policies and extensions of coverage added to standard property insurance policies may provide insurance coverage for losses caused by "communicable or infectious diseases" without requiring physical damage to insured property

In addition, some commercial property insurance policies provide coverage for business income losses sustained when a "civil authority" prohibits or impairs access to the policyholder's premises. "Civil authority" coverage may respond with insurance for the attendant income losses of affected businesses.

If you believe you may have claim, or if you have filed a claim and been denied coverage – give us a call at 251-928-0191, and we will be glad to discuss the particulars of your case.

At Milam & Milam, we have 25 years of combined experience serving Alabama and Florida clients. We can help you with all of your legal matters involving insurance claims. Our office is near Mobile, in the Baldwin County city of Fairhope. Contact us by calling 251-928-0191 or request a consultation through our online form.