How Can You Get Financial Coverage If You Suffered Due to COVID-19 “Stay-At-Home” Orders?
The whole world is suffering nowadays because of the Coronavirus (COVID-19). The United States, like numerous other countries, is on national lockdown. The lockdown affected everyone either directly or indirectly. Both small and large businesses have suffered as a result.
Free movement has limits after Los Angeles Mayor’s “stay-at-home” order. This leads to a chaotic environment for numerous businesses. It can be especially crucial for small businesses. Several businesses can not operate at all. It is very important now to provide especially the small and essential businesses with assistance and with new stimulus to overcome this situation.
The COVID-19 pandemic brought unprecedented disruptions to businesses and individuals across the globe. Government-imposed “stay-at-home” orders, while necessary to curb the spread of the virus, caused significant financial hardship for many. If your business suffered losses due to these mandatory closures or restrictions, you might have a claim to compensation. At KAASS Law, we commit to helping you explore available avenues for recovery. The following is our attempt to help navigate information about seeking coverage for losses related to COVID-19 “stay-at-home” orders.
Any kind of business assistance is worth it now. Additionally, still, several ways may reveal to seek coverage from your insurance for harm caused to your business due to the lockdown.
Business Interruption Insurance: Your First Line of Defense
Business interruption insurance is designed to help businesses recover financial losses incurred due to unexpected events that disrupt normal operations. This coverage typically includes:
- Lost profits: Compensation for income lost due to the interruption.
- Fixed costs: Coverage for ongoing expenses like rent, utilities, and loan payments.
- Operating expenses: Reimbursement for expenses incurred to mitigate the interruption, such as relocating operations or setting up remote work arrangements.
- Civil authority coverage: This specific type of coverage may apply if your business was forced to close due to government orders, such as “stay-at-home” orders.
Challenges with Business Interruption Claims
Many businesses faced challenges when filing business interruption claims related to COVID-19. Insurance companies often denied claims, arguing that the pandemic did not cause “physical damage” to property, which is a typical requirement for coverage. However, several legal challenges and court rulings have provided some hope for businesses seeking coverage.
In Which Scenarios Can You Claim Coverage?
Different types of insurances exist to secure your business from undesired consequences. And each of them has its own policies, which define when, how, in which terms the insured can claim and get coverage. Many entrepreneurs prefer to pay more for insurances, to be premium members, and to be on the safe side, but some of them choose cheaper insurances, without any additional coverage only for the riskiest scenarios.
To figure out whether you can claim coverage from your insurance you should read very carefully the policy defined for your insurance. In the policy, you may meet the point that provides you with the lawful right to claim for your coverage. Sometimes it can be very difficult for a non-lawyer to discover that very point in the whole policy and it is important to consult with an attorney experienced in cases related to Insurances.
Who Can Apply?
If you found out that your insurance contains the point that covers the present scene and you strongly believe that there exists the lawful right to claim for coverage, you should figure out now who has the liability to claim. By default, it will be the business owner on behalf of his or her own business.
There may be a possibility also for landlords, who are forced to deal with unpaid rent and other related issues stemming from their tenants’ cessation of use with respect to the Insured Premises.
Receive Legal Assistance for Financial Coverage Claims Related to COVID-19 Stay at Home Orders
The nowadays situation is very unusual, it may even become confusing to a lawyer, let alone to a person without any legal discipline at all.
Los Angeles Insurance Attorneys
The COVID-19 pandemic brought unprecedented disruptions to businesses and individuals across the globe. Government-imposed “stay-at-home” orders, while necessary to curb the spread of the virus, caused significant financial hardship for many. If your business suffered losses due to these mandatory closures or restrictions, you might be entitled to compensation. At KAASS Law, we understand the challenges businesses have faced and are committed to helping you explore available avenues for recovery. The State of California also has a guidance and resources available to look into alternative solutions.
KAASS Law firm’s lawyers are experienced in cases related to insurances and they can provide you with Coronavirus (COVID-19) legal help. They can help in the validity of the potential claim. They can ensure that the time limit, in your case, is met. Also, to produce the imperative paperwork available. This paperwork plays a huge role in such kinds of processes and is a mandatory part of compliance rules.