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Businesses are Battling Insurers Over the Coronavirus Business Interruption

Businesses are Battling Insurers Over the Coronavirus Business Interruption

There is currently a huge standoff between the nation’s leading insurers and businesses such as restaurants, gyms, movie theaters and hotels that have purchased insurance policies from these companies. According to a report in The Washington Post, this battle is spilling into the powerful corridors of the nation’s capital as both sides spar over what should be done over the enormous financial setback businesses have faced during this pandemic.

Lobbying War in Washington

The battle essentially hinges on whether insurance providers should have to pay claims to businesses that have had to shut down unexpectedly to prevent the spread of the virus. The dispute has even attracted the attention of President Trump, triggered lawsuits around the country and a massive lobbying blitz on Capitol Hill where some insurers say the federal government should be the one providing financial aid to those who need it the most.

Lobbyists for insurers have continued to maintain that business interruption policies were never intended to cover pandemics. Even if they had been, the estimated claims from small businesses during the coronavirus pandemic could add up to more than $430 billion, threatening the industry, they say. But business owners who have paid their insurance premiums for years say they have been misled and now face horrible financial times without the help and support they were promised.

Some have sought federal aid in response. Prominent restaurateurs such as Wolfgang Puck have raised the issue directly with President Trump. The issue has assumed even more important because of the growing confusion about who qualifies for federal coronavirus aid, given evolving government guidelines and vanishing funds.

Business Interruption and COVID-19

A majority of insurance companies have not been paying COVID-19 business interruption claims saying that a pandemic does not fulfill the criteria for such compensation. But, our business interruption claim lawyers don’t agree with that assertion. We believe that many policies do apply to the current coronavirus pandemic and we are ready to fight for our clients to make sure they receive the just compensation in this matter.

Government guidelines have forced businesses to close or limit their operations. This is a crucial step to stop or slow the spread of the virus but, it has put those businesses at risk of severe loss or even closure. This could form a basis of a lawsuit against an insurance company that is denying a business interruption claim. If your claim has been denied, please contact us at 1-844-US-COVID to find out how we can help you.


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California Personal Injury Blog