Running a business in the time of COVID-19, is incredibly difficult. In fact, for millions of business owners, it is simply impossible. For companies that rely on imports, they are facing closure until the economy is allowed to fully open again. You may also be a small business that is unable to make deliveries and or afford to hire a delivery company and website design service. So, this is why business interruption insurance is so important. If you have this kind of coverage you will be hedging a bet against things like natural disasters, economic crashes, and even pandemics. Can they be fought against? Are they worth it? Let’s explore, shall we?
Business interruption
So, what does this mean? It’s when your business is not receiving the normal amount of traffic from customers, due to reasons that are out of your control. This could be things such as blackouts, natural disasters, or perhaps COVID-19. This is not your fault and yet you will suffer so much loss of profits, that shutting up for the time being and relying on your savings could be the only cause of action. But before you board up your business, you should consider if you qualify under these circumstances. Your business interruption insurance should cover things like this, but you have to prove to the insurer that you are suffering from these conditions.
How to prove it
This is the tough part. You will need to present evidence that your business isn’t receiving footfall. You might think this is easy, but without a history of facts, it’s difficult for the insurer to know if you have a claim or not. This is why you should always log how many customers you get per day, and not just in sales alone, but in customers. One customer might make multiple purchases in the week, this shouldn’t count for individual customers. Each unique sale is the point of the record. You can also prove your lack of sales, but the date it all went downhill. This could coincide with a lockdown, a blackout or an economic crash. It’s important to track your sales and cash flow, in tandem.
How to fight a refusal
Sometimes insurers just won’t be convinced, or, they are just playing hardball. Let’s face it, insurance companies never really want to pay out, and they will fight you on it if they can. So, firstly, contact good insurance dispute law firms that have many case studies to prove they have experience in this field. And ask them to build a case for you. Give them all the evidence you can and share your story with them. In insurance dispute courts, using a personal emotional story is important. Courts like business owners naturally, because of their impact on the economy. So, take your time and go through with the law firm, the various dates, statistics and other details to start your fight back.
Business interruption insurance claims can be sketchy because there are a lot of gray areas. But with a good team and good evidence to show, you should be able to make the insurer pay up.
Photo by Daniel B photos
