Business Interuption Insurance Disputes

As a result of the COVID-19 epidemic, all kinds of British Columbia businesses are suffering losses. Restaurants, dental clinics, professional services, musicians, event planners, schools, charitable organizations, retail stores and others are affected. 

 Many insurers are not ready to pay out claims for business interruption insurance caused by COVID-19. Recently, the insurance company for dental offices initially refused then decided to allow coverage for the huge number of dentist offices that have been shut down as a result of the pandemic. 

 However, we are still getting reports of insurance denials. In one case, the insurer denied business interruption coverage for losses from the pandemic even though the policy specifically provided for coverage “in the event of losses arising from a pandemic”! 

 In other cases, insurers are denying business interruption coverage even though the insurance policy, again, specifically allows for coverage in the event that a “civil authority” prevents access to your business in the event of a natural disaster or another event which could include a pandemic. In those cases, you may have a viable case to challenge insurance denial. 

 You may qualify for business interruption insurance if your supply chain is interrupted, which forces your business to close in whole or part. 

Then, too, there are many other reasons aside from a pandemic that may qualify you for business interruption insurance including public works projects (for example, construction of SkyTrain lines in front of your store), floods and building damage. 

Business interruption insurance may cover any of the following: 

• fixed costs 
• supply chain losses 
• relocation expenses 
• payroll losses 
• revenue losses 

  Every policy is different, and our firm can help you understand your unique situation.