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For many businesses large and small, business interruption insurance is an essential way of protecting profits in the event of a calamity that forces them to shut down. As with any insurance policy, though, collecting on a business interruption claim is often easier said than done, especially during widespread disasters like the COVID-19 pandemic.

If your claim for business interruption benefits was denied, it may take a lawsuit—and help from a seasoned business interruption attorney—to acquire the coverage your business needs. A North Carolina business interruption claim denial lawyer could guide you through the process of appealing your claim and work tirelessly to protect your best interests.

What is Business Interruption Insurance in North Carolina?

Business interruption insurance is typically marketed as protection for business owners from unforeseen disasters. In the event of a storm, earthquake, fire, or any other event that requires the business to close and/or lose money due to recovery expenses, business interruption insurance could cover various financial losses stemming from that event.

Different policies may offer different benefits, but generally, business interruption insurance covers losses like:

  • Loss of revenue due to business closure
  • Operating expenses and other fixed costs
  • Extra expenses necessary to maintain operations during or immediately after a crisis
  • Moving expenses if the business needs to temporarily or permanently relocate

These policies may also apply to closures required by local, state, or federal government authorities, whether for a natural disaster, a public event, or a curfew. Coverage should extend from when the disaster in question begins to when all repairs and adjustments necessary for the business to return to full operating capacity are finished.

Importantly, most business interruption insurance policies do not provide coverage for the costs of repairing disaster damage. If a claim is denied, a business interruption claim denial attorney in North Carolina could negotiate with an insurer on a policyholder’s behalf to get them the coverage they need.

Businesses Closed Due to COVID-19

North Carolina Governor Roy Cooper has announced that the state will plan to close or restrict multiple business operations to proactively stop the spread of COVID-19. This includes operations related to some recreational activities. As a result, gyms, movie theaters, or live show venues may experience closures. Other businesses such as nail salons, barbershops, and massage therapists may be similarly affected. Some retail stores and restaurants have also been restricted to curbside pick-up, carry-out, or delivery services only. Restrictions or closures due to COVID-19 may have a financial impact on a business and could potentially be considered a business interruption.

How Could Someone Contest a Denial of Business Interruption Benefits?

Unfortunately, many business interruption insurance policies in North Carolina exclude certain types of disasters from coverage. As early as 2006, many major insurers specifically named “loss due to virus or bacteria” as invalid grounds for a business interruption claim—a full 14 years before COVID-19 impacted thousands upon thousands of businesses across the United States.

Whether a business is disrupted due to coronavirus or any other form of disaster, not having access to business interruption insurance benefits could have catastrophic consequences for both the owner of the business and their employees. Fortunately, a skilled lawyer could help anyone in North Carolina who has had a claim denied contest the grounds on which their claim was rejected.

Once retained, legal counsel could help a business owner compile the required documentation, estimate projected losses and expenses, and prepare a lawsuit demanding access to the benefits they paid for. Even if the language of a policy explicitly exempts the disaster that impacts a particular business, it is still a good idea to file a claim anyway, as future legislation from state and federal legislatures may end up affecting the benefits available to covered business owners.

Discuss Legal Options with a North Carolina Business Interruption Claim Denial Attorney

Claim denials from insurance companies are endemic in the United States, even during the unprecedented COVID-19 pandemic. If you need help pursuing your policy benefits after your initial claim was rejected, consider talking to an experienced North Carolina business interruption claim denial lawyer like Matthew Bissette.

Matthew has spent years helping individuals understand their rights and making sure their insurance companies do not take advantage of them. Through comprehensive legal analysis and tireless dedication, he may be able to help you recover the compensation you deserve. Call today to set up an initial consultation.