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Business Interruption Insurance Without Property Damage

When most people think of a business being interrupted due to a major event, they think that it must involve some sort of property damage. However, it is not always the case that a business sustains direct property damage. There are many other ways that business operations can be halted due to non-property damage related incidents. This could include government-mandated shutdowns, cyberattack incidents, and more. As the COVID-19 pandemic has shown us, there does not need to be property destruction for a business to have to shut its doors. At Bentley & More LLP, our California business interruption insurance lawyers are here to help.

Businesses can experience interruption without property damage

When a business experiences a total or near-total stop in operations, it is often due to an incident that causes major damage to the businesses’ physical property. This can include hurricanes, earthquakes, fires, flooding, terrorist attacks, and more. However, an interruption of business does not necessarily mean that there was physical property damage.

There are other ways in which a business may be completely shut down. This can include:

  • Social unrest and protests
  • Cyber attacks on a company
  • Supply chain interruptions
  • Loss of business due to violence nearby
  • Pandemics, such as COVID-19, Ebola, Zika, etc.

As California and the rest of this country continue to struggle economically due to the coronavirus pandemic, we have seen most businesses come under some kind of government shutdown order.

Yes, it is possible to obtain business interruption coverage for a stop in business operations not caused by actual property destruction. However, it will be contingent on how your specific policy is worded. Some policies may have exclusions for pandemics.

If a business is eligible for this type of interruption insurance, it will still be vitally important for business owners and operators to be able to prove how much income they have lost. This will include the need to show historical and projected sales data. Businesses will need to provide revenue statements, tax returns, and more. They will also need to show projections about how their business may have fared economically had the interruption not occurred.

Concerning COVID-19, another aspect to consider is whether or not businesses that remain partially open, such as restaurants, are entitled to any type of business interruption coverage. In these cases, restaurants have seen a dramatic decrease in revenue, despite still being open for drive-through and take out orders.

Contact our attorneys for help with your case today

If your business has been interrupted by an unforeseen circumstance, you need to seek legal assistance as soon as possible. At Bentley & More LLP, our Orange County personal injury attorneys have a thorough understanding of how business interruption insurance works. As the coronavirus pandemic continues to sweep across this country, we are ready to help you through this. Our goal is to ensure you are treated fairly and that the insurance company upholds their end of the deal. When you need a California business interruption insurance attorney, you can contact us for a free consultation by clicking here or by calling (949) 870-3800.