Business Interruption Insurance for Contactors: What You Need to Know
If you are a contractor, then your business depends on getting hired by individuals and other businesses to remain profitable. However, when a major disaster or shutdown forces widespread closures, it can affect contractors as well. At Bentley & More LLP, our California business interruption insurance attorneys want to discuss how this insurance works and whether or not it can help contractors. As the COVID-19 pandemic continues to sweep across this country, we are dedicated to helping clients determine what they are entitled to through their insurance policies.
Business interruptions affect everyone, including contractors
At its core, business interruption insurance is meant to cover the insured business for lost profits during the period of time it takes to recover from a disruption. Some of the most common cause of business disruption can include:
- Natural disasters (fires, floods, earthquakes, hurricanes)
- Water damage
- Machinery breakdown
- Loss of electricity or running water
- Cyber-attacks on the business
- Crime or vandalism
- Supply chain disruptions or supplier failure
- Civil or military orders
- Pandemic responses (such as COVID-19)
Contractors are also businesses. They are usually small businesses, which are the backbone of the US economy. When there is a widespread disruption in regular business operations, this will affect contractors. There are various types of contractors that can be affected by business disruptions, including general contractors (i.e. construction-type workers), freelancers (which encompass every industry), and more.
There are generally a few ways in which companies are eligible for business interruption insurance coverage. This includes the period of time the business is shut down due to physical property damage. This also includes a loss incurred due to civil authority actions. As we have seen throughout the coronavirus pandemic response, this can include imposed curfews, transportation restrictions, quarantines, stay at home orders, and more.
Many policies explicitly state that there must be some sort of physical property damage for a contractor to be eligible for this coverage. However, many contractors do not have a physical location. It is vital that all contractors who have business interruption insurance look closely at their policies to see how they are worded. A skilled California business interruption lawyer will be able to determine whether or not your business will be covered by losses sustained due to a disruption in normal contractor operations.
COVID-19 is affecting everyone, including contractors. It is important that insurance carriers act in good faith and abide by the terms of their policies.
We are ready to help with your business interruption case
If your business has been interrupted by a natural disaster or other unforeseen event, you may need to seek legal assistance in order to get your full business interruption insurance coverage. As the coronavirus pandemic sweeps across the country and continues to disrupt the economy, this type of insurance may be what keeps businesses afloat. At Bentley & More LLP, our qualified and experienced team of Orange County personal injury lawyers is ready to get to work on your case today. When you need a California business interruption insurance attorney, you can contact us for a free consultation by clicking here or by calling 949-264-0226.