Business Interruption

California Business Interruption Claims

Kantor & Kantor, LLP Supports Your Business

Has the coronavirus/COVID-19 pandemic forced your business to shut its doors to the public due to a civil authority order? If you have business interruption insurance, which most small business owners do, then you might be able to use it to get financial support during this unprecedented time.

To give your business interruption claim strength after it is wrongfully denied, let Kantor & Kantor, LLP provide legal counsel, guidance, and representation if need be. We have focused on our practice on representing clients whose insurance companies have refused to pay legitimate claims, including highly complex business interruption claims. Insurance companies love to find any reason to deny, delay, or undervalue the claims filed by their loyal customers. Luckily for our clients, we love to challenge them head-on, in and out of court.

Protect your business’s future. Call (877) 783-8686 for help with your business interruption claim.

What Does Business Interruption Insurance Cover?

Many commercial insurance policies offer business interruption coverage for situations where businesses are forced to shut down or dramatically decrease production. The typical language of that coverage states that it is provided for “physical loss or damage” to the building. It also usually includes “civil authority” shutdowns for “physical loss or damage” to other areas. Insurers have pushed to interpret that language as meaning “structural” damage. But many courts have disagreed, and have held that “physical loss” includes bacterial contamination, contamination from pollution, air quality issues, and other non-structural issues.

Recognizing that paying out all of the business interruption claims will be costly, insurance companies are aggressively arguing that viruses are not a covered basis for a claim. But that issue has not been decided by the courts. Some insurance companies are even denying claims where the businesses expressly obtained virus coverage in their policies, demonstrating that the real goal for the insurance companies is to deny the claims and avoid paying the benefits that businesses are owed after dutifully paying their premiums.

Coverage provided through business interruption insurance can help pay for:

  • Operating expenses: Miscellaneous operating expenses can be significant for even small businesses. Rent is often considered an operating expense. Business interruption insurance can help cover these costs to keep a business afloat while selling its products or services becomes impossible.
  • Temporary relocation costs: You might be able to continue running your business to some extent by relocating to a second location. For example, if you normally work from a shared commercial office that has been closed to quarantine, then you could set up a temporary office in your own home. The money you spend to set up a secondary business location can be covered by your insurance policy.
  • Employee payroll: To the benefit of your employees, your business interruption insurance can provide weeks of payroll while your employees cannot come to work and earn a living. It is important to keep in mind that the outcome of your claim not only affects you but also all the people depending on your business to keep running.
  • Tax payments: Even during the coronavirus pandemic, the federal government expects regular tax payments from individuals and businesses alike. If you are worried that you will not be able to pay your taxes due to business interruption, then you should consider filing your claim soon.
  • Loan installments: There are business interruption insurance policies that provide for regular loan payments. Using this insurance, you can prevent accruing interest on your loans, but only if your insurer accepts your claim.

We’re Ready to Fight for Your Business

Kantor & Kantor, LLP is known throughout California for taking on major insurance companies on behalf of claimants in need. If your business is struggling due to the coronavirus or another natural disaster, and your insurance company has rejected your claim, please call our business interruption claim attorneys at (877) 783-8686 as soon as you can. We have focused the heart of our law firm on challenging insurance claim denials. Using our extensive legal experience and strong reputation with insurance industry giants, we can confidently represent your case in an initial trial or appellate case.

There are no out-of-pocket costs to retain our services and no attorney fees if we do not win your case. Contact us right now to learn more.

Many commercial insurance policies offer business interruption coverage for situations where businesses are forced to shut down or dramatically decrease production. The typical language of that coverage states that it is provided for “physical loss or damage” to the building. It also usually includes “civil authority” shutdowns for “physical loss or damage” to other areas. Insurers have pushed to interpret that language as meaning “structural” damage. But many courts have disagreed, and have held that “physical loss” includes bacterial contamination, contamination from pollution, air quality issues, and other non-structural issues.

Recognizing that paying out all of the business interruption claims will be costly, insurance companies are aggressively arguing that viruses are not a covered basis for a claim. But that issue has not been decided by the courts. Some insurance companies are even denying claims where the businesses expressly obtained virus coverage in their policies, demonstrating that the real goal for the insurance companies is to deny the claims and avoid paying the benefits that businesses are owed after dutifully paying their premiums.

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