Business Interruption Claims – Income Loss
Ligori & Ligori is a Tampa Personal Injury law firm representing businesses that have lost income due to an unexpected business interruption.
Business interruption insurance is an optional product for Florida businesses that provides continuing income in the event of a disaster that temporarily closes the business and you lose your income. It can be added to your standard property insurance policy. For example, in the event of a flood that renders your company unable to operate, business interruption insurance compensates for the income you lose while closed for repairs.
Business interruption insurance also covers your company’s basic operating expenses while you are closed, such as water, electricity, payroll, and taxes. It can also be extended to cover losses to the property of suppliers or consumers. You may choose to add this coverage to your property insurance, but it is distinctly different. Property insurance covers the costs of repairing the damages to your actual property; it does not include replacing your business income or expenses.
Business interruption insurance is designed to provide your Florida business vital protection when a catastrophe strikes – when you need it the most. During the COVID-19 pandemic, many businesses have been forced to close and have no way to generate income or profits. This is the time to file a claim on your business interruption insurance policy.
Bad Faith Insurance Claims Lawyer
Unfortunately, some insurance companies may resist claims against your business interruption policy due to COVID-19. Business interruption insurance is typically used to cover income losses due to some natural disaster, such as a fire, flood or hurricane. These events often leave destruction in their wake, making it impossible for a business to operate.
The COVID-19 pandemic and the responses to it on local, state and federal levels are entirely unprecedented. Your business has likely suffered no physical damage. Your loss of income is, instead, due to executive orders from governmental leaders that have severely restricted your business operations or even ordered your business to close.
When an insurer refuses to meet their contractual obligations in providing claims payment, this can be grounds for a bad faith insurance claim. Ligori & Ligori Attorneys at Law are your experienced choice in Florida for filing and pursuing a bad faith insurance claim against your insurance company. We have offices in Tampa, Lakeland and Ocala to serve you.
How Can My Insurance Company Show Bad Faith in My Claim?
Insurance companies are driven by the goal of generating profit, and unfortunately, some may resort to questionable tactics to avoid paying or limiting legitimate claims. It is crucial for policyholders to be aware of signs indicating bad faith practices by their insurance providers. Some common ways insurance companies exhibit bad faith include:
Failing to Promptly and Thoroughly Investigate a Claim:
- Insurance companies may intentionally delay or conduct a superficial investigation into a filed claim, resulting in prolonged uncertainty and financial strain for the policyholder.
- Timely and thorough investigations are essential to ensure a fair assessment of the claim’s validity and to provide prompt resolution.
Unreasonably Interpreting Policy Language:
- Some insurers may deliberately misinterpret the language in an insurance policy to justify denying or limiting the scope of coverage.
- Policyholders should carefully review their insurance contracts and be vigilant about any arbitrary interpretations that deviate from the intended coverage.
Refusing to Settle the Case or Provide Adequate Reimbursement:
- Insurance companies might resist settling a valid claim or offering sufficient reimbursement, burdening policyholders with unexpected financial losses.
- Policyholders have the right to expect fair and reasonable settlements that adequately cover the losses incurred under the terms of their insurance policies.
Denying Payment of Benefits While Terminating the Policy:
- Some insurers may wrongfully deny the payment of benefits owed under a policy and simultaneously terminate the coverage.
- This dual action can leave policyholders without the financial support they expected and without the insurance coverage they have been paying for.
Amid the challenges posed by the COVID-19 pandemic, it becomes even more critical for companies to be vigilant against dishonest tactics employed by insurance providers. Federal lawmakers have recognized the need for insurance coverage in these unprecedented times, suggesting that insurance companies should provide coverage for COVID-19-related claims. In response, some states have introduced legislation mandating insurers to offer coverage for such claims.
Ligori & Ligori Attorneys at Law is committed to assisting policyholders in navigating the complexities of insurance claims. If you suspect bad faith practices or need guidance on your claim, our team is prepared to examine your claim and insurance policy to determine the viability of pursuing a bad faith claim in your best interests. Understanding your rights as a policyholder is crucial, especially in challenging circumstances like those brought about by the ongoing pandemic.
Now is not the time to gamble with your company’s future by trusting an insurance company to promptly do the right thing. If you have not yet filed a claim on your business interruption policy for COVID-19 and are wondering if your situation qualifies for coverage, we would be glad to examine your policy and provide counsel. If your Florida business interruption insurance claim for COVID-19 has been delayed or denied by your insurer, contact us online or call Ligori & Ligori at 813-254-7119 to arrange your free claim evaluation. We have offices in Tampa, Orlando, Ocala, Lakeland and Key West, Florida.