Many insureds have heard the insurance companies’ latest mantra that:
- business losses suffered in connection with the recent responses to COVID-19 are not covered by policies with business interruption coverage;
- such losses are not caused by the type of physical damage required to file a successful claim; and
- exclusions for losses in connection with viruses are ironclad.
Certainly, there will be opposition by carriers to recovering business interruption losses in connection with COVID-19, and we expect insurance companies to swiftly deny such claims. The legality of such denials is not, however, as certain as insurance companies would have you believe. In addition to filing a proof of loss and a claim with their insurer, insureds can take the following three actions today to best protect their rights.
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