Colorado Springs Business Interruption Claims

CALL (800) 863-5312 TO SPEAK WITH COLORADO SPRINGS BUSINESS INTERRUPTION LAWYERS FOR FREE

Nearly every aspect of life for Colorado residents has been impacted in some way by COVID-19. From the emergency shift to online schooling to large-scale job losses, Coloradans have been dealt heavy blows by the virus. Unfortunately, business owners have been hit extremely hard by stay-at-home orders preventing customers from shopping, as well as the general economic downturn that is dissuading spending.

If your business has been impacted the coronavirus and you are thinking about filing a claim under business interruption insurance in Colorado Springs, call (800) 863-5312 for a free consultation with an experienced attorney.

COVID-19 BUSINESS INTERRUPTION CLAIMS IN COLORADO SPRINGS

Many business owners who purchased business interruption insurance may have assumed that their policy would cover them in the event of a large-scale disaster like the coronavirus pandemic.  However, business interruption insurance is typically designed to cover situations like wildfires and storms that cause actual damage to property. More than that, many policies specifically exclude viruses or pandemics.  If you are a Colorado business owner and have been negatively affected by the pandemic, your first step should probably be to look at the specifics of your policy to see what is and is not covered.  Next, it may be advisable to speak with a Colorado Springs business interruption insurance attorney to find out what your options might be and how to strategize moving forward.

WHAT IS BUSINESS INTERRUPTION INSURANCE?

Business interruption insurance (BII) is a special type of insurance coverage that compensates a business for lost income and costs incurred during an emergency or disaster.  It is typically not its own insurance policy.  Rather, it is instead added to an existing policy that covers the property.  Essentially, it insures a business owner for the period in which they cannot operate due to a disaster, from the time of the disaster happening to the “end of business interruption period,” which is typically defined as when the damaged property has been restored to the state that it was in before the disaster occurred.

Each plan will be different in what exactly it covers, but a few of the more common costs that are covered by BII include:

Profits

Obviously, businesses exist to make a profit, which they cannot do during a disaster.  The most basic element that typically will be covered by BII is the profits that the business was unable to earn.  This will usually be measured by the profits that the business earned in the previous month.

Taxes

Even during a disaster situation, businesses may be required to continue paying taxes.  Because of this, BII may help a business make these payments to avoid paying any fines or fees.

Staff Wages

If it is deemed to be essential to prevent the business from losing employees during the disaster period, then BII may help business owners pay the wages of their staff.

FILING A CLAIM FOR BUSINESS INTERRUPTION INSURANCE

Every business is different and has different needs, which means that no two claims under a business interruption policy will ever be exactly the same.  However, there are some general steps to think about when filing a claim for BII.

1. Closely Read Your Policy

Your policy will outline all of the specifics that you are covered for.  Looking at your policy can be a good way to inform yourself before communicating with your insurance company.  In addition, you may have responsibilities under the policy, so reading it closely can be a good way to avoid making a mistake that might damage your claim before it gets off the ground.

2. Contact Your Insurance Company

It is important that you contact your insurance company or agent as soon as possible.  There may be requirements under your policy that specify the timeframe within which you have to file a claim.  In addition, a lengthy delay before you attempt to file a claim could be used by the insurance company to argue that your damages are not as serious as you claim they are.

3. Maintain Detailed Records

Before you file your claim, and during the time period in which your claim is being processed, gather and maintain detailed business records.  This includes documentation about the revenue from your business, costs to keep operations afloat, and any other additional expenses that you might incur.  It will be important to show the revenue that the business was bringing in before and after the pandemic began.

4. Speak to a Colorado Springs Attorney

Filing a BII claim can be complicated, especially when the disaster at hand is a pandemic, which is something that an insurance company is likely to claim that they won’t cover you for.  Having an experienced Colorado Springs business interruption insurance attorney on your side who is familiar with the law may help you negotiate a better settlement.

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DO I NEED A LAWYER TO FILE A BUSINESS INTERRUPTION CLAIM?

If you have paid the premiums for business interruption coverage, then you are entitled to the services that you paid for.  Unfortunately, it is important to note that the goal of your insurance company is ultimately to make money.  This means that if they think they can get away with not paying you, then they might take that route.

An attorney who has experience in this area might be able to help you value your claim and understand what a fair settlement looks like.  If you have been denied compensation, then your attorney may be able to help you take the next steps in seeking what you may be entitled to.

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HOW ZINDA LAW GROUP HANDLES FIRST-PARTY INSURANCE DISPUTES

Generally, an insurance policy is a contract between two parties—the insured and the insurance company. If the insured policyholder makes a claim, then this is known as a first-party claim.  This is in contrast with a third-party claim, where a claim is made against the insurance company by someone other than the insured.

Zinda Law Group attorneys may be able to help you file your first-party claim in a few different ways.  First, they might be able to gather all of the relevant documentation, which is an important step in any insurance claim. They also may be able to help you accurately value your claim, and then make persuasive arguments to the insurance company on your behalf.

ZINDA LAW GROUP’S COLORADO SPRINGS ATTORNEYS MAY HELP YOU AND YOUR BUSINESS

You may be eligible to file a BII claim based on COVID-19, but insurance companies are not likely to make it easy for you.  Remember, they want to avoid paying out any money if they can help it.  This means that the assistance of an experienced attorney could be very helpful to you.

Zinda Law Group remains in full operation and may be able to help you with your legal claim.  We are devoted to providing our clients with the resources of a large firm combined with the attention of a small, local office.  We believe that victims of unfair circumstances shouldn’t need to worry about affording legal representation, which is why we use a no-win, no-fee system—you don’t pay us anything unless we win your case.  If your business has been impacted by the corona virus and you are thinking about filing a claim under business interruption insurance, call (800) 863-5312 for a free consultation with an attorney about your Colorado Springs business interruption insurance.

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