The COVID-19 pandemic has brought many uncertainties to the world, impacting the daily lives of individuals and businesses universally as the economy ground to a halt.
Fortunately, most businesses carry commercial insurance which should be able to mitigate some of those losses.
However, as restaurants, hair salons, dentists and many other private businesses submit their claims, insurance companies are rejecting them outright in Illinois and Missouri.
If you are one of these businesses, it is reasonable to question why a claim is being denied and seek answers to what you can do about it.
Penn Law COVID-19 Litigation Tracker
The University Of Pennsylvania Carey Law School created a COVID Coverage Litigation Tracker that looks at the number of lawsuits filed against business insurance providers since the start of the pandemic.
With the most recent data ending in mid-September, more than 1,200 cases have been filed seeking coverage for COVID-related losses.
The top three reasons for coverage sought by far are lost business income, additional expenses incurred, and civil authority (an insurance clause that outlines how the loss of business income coverage applies when the government denies access to your property).
Similar to what we have seen in the St. Louis area, the most frequent industries filing lawsuits seeking business insurance coverage are food service, health care and personal services.
As you might expect, the insurance companies are working hard to avoid paying business owners for these losses – more than 250 motions to dismiss have been filed to date.
Restaurant Commercial Insurance Claims
Restaurants are arguably one of the most impacted industries by COVID-19.
At the beginning of the pandemic, restaurants were among the first to have restrictions put in place that significantly impacted operations. While they were eventually allowed curbside pickup, that still resulted in a significant loss of business (and in turn, revenue).
The areas most affected by the pandemic:
- Lost Revenue
- Staff Payroll
- Lost Customers
- Food Waste
Hair Salon Commercial Insurance Claims
From the beginning of the pandemic, hair salons were deemed as an unessential business.
Unlike restaurants, there was no alternative to providing their services, so they simply had to shut down until later phases of reopening.
The closing of hair salons affected the business in multiple ways:
- Lost Revenue
- Staff Payroll
- Lost Clients
Dental Practice Commercial Insurance Claims
Although dentists perform a critical role in maintaining personal health, dental offices had to close because of the special risks posed by dental procedures.
Because of the closure of these clinics, the dental industry has lost business in the following ways:
- Lost Revenue
- Staff Payroll
- Lost Clients
Business Losses Should Be Covered By Your Insurance
All of these businesses have lost much of their livelihood due to the pandemic, and all these industries are seeing claims rejected by the insurance companies.
These claims are being improperly rejected mainly due to no physical damage being done to the property of the business; however, businesses should still be compensated for losses out of their control.
If you are a business that has dealt with any of the losses above due to COVID-19 and have had an insurance claim denied, contact the team at the Law Office Of Richard S. Cornfeld today for a free consultation.
Our attorneys are representing many businesses and professional offices across Illinois and Missouri who are dealing with rejected commercial liability insurance claims.
Don’t miss out on the chance to recoup losses; your business deserves to be represented during this time.
