Tips for Pursuing Insurance Claims for Losses from COVID-19

Policyholder Advisor & Alert

PUBLISHED ON: May 28, 2020

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Many businesses and other entities have submitted insurance claims for business interruptions and extra expenses stemming from the disruption of their businesses by COVID-19. Whether these claims stem from the presence of the virus on the policyholder’s own property or the property of customers or suppliers, or result from government orders impairing access to insured locations or other properties, the vast majority of policyholders have received either flat out denials of coverage or requests for very specific and sometimes voluminous information. Those demands come even though in all likelihood the insurance company intends to deny coverage based on the simple argument that COVID-19 is not property damage, or that viruses are excluded under the policy in question.In other words, the lengthy information requests and the effort required to comply with them likely serve no purpose other than to allow the insurance company to assert that it investigated the claim.

Either situation, a blanket denial or an information request, can leave the policyholder wondering how, if at all, to continue to pursue the claim. The following tips can help policyholders bring a claim to resolution as quickly as possible and with the greatest chance of success....