75% of small businesses have seen significant negative impacts on their businesses due to COVID-19.
Many business owners bought business interruption insurance coverage, which is meant to protect companies from the loss of income resulting from unexpected events. In times like of uncertainty, you may rely on this coverage to stay afloat and keep your staff in place and secure.
But when this coverage is needed most, right now, the insurance industry as a whole has indicated that it plans to deny Pandemic-Related Claims. As a policy owner, it is critical that you act quickly to maximize your chance of receiving the coverage you paid for.
We need to make insurance companies accountable and not let the future of small businesses in British Columbia suffer.
If your business has been impacted by COVID-19, we can help if you follow these four steps:
1. Locate your policy
Business interruption insurance coverage is typically found in a property and casualty insurance policy or a business owners’ packet of insurance. If you cannot find your policy, contact your broker and request a copy as soon as possible
2. Ask a lawyer to review it
Policy jargon will not only determine if coverage is triggered, but also the scope of coverage and what constitutes a financial loss. It is challenging to interpret the complex, dense – and intentionally confusing – language in insurance policies. Having your policy reviewed by a lawyer with experience in insurance coverage and litigation, is critical to understanding your options.
3. File a claim
Do not be intimated or dissuaded. If you do not submit a claim with your insurer, you may lose your right to coverage – the coverage you paid for. Policies generally stipulate a window of time during which a claim should be filed, so it is important to submit your claim promptly.
4. Document your losses
Keep records of all the ways your company has experienced a loss. Beginning with the date of shutdown and moving forward, track all losses and expenses you have incurred as a result of the pandemic and any necessary changes to business operations, such as protective equipment etc.
Slater Vecchio is reviewing claims against commercial insurers related to business interruption policies and COVID-19. If you would like help, contact us today for a no-obligation review of your policy and your case.
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