Arkansas COVID-19 Business Interruption Claim Litigation

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Coronavirus, or COVID-19, has completely changed the landscape for business owners who depend on human-to-human contact to provide their services. Some business owners are trying to adapt to the stringent protocols in place during the pandemic while others are facing the possibility of closing their doors forever. Under these circumstances, business interruption insurance would help many business owners stay afloat during these trying times. Unfortunately, many business interruption claims are being denied as insurance companies argue that interruption coverage is not provided for a pandemic. If your insurance company denied your claim for business interruption compensation, contact an experienced Arkansas COVID-19 business interruption claim lawyer.

Gunn Kieklak Dennis, LLP understand the tremendous burden placed on business owners in Arkansas that have had to close their doors for weeks, and we are ready to fight for you. Our commercial litigation team possesses decades of combined legal experience, and we are here to stand with you. To schedule a confidential legal consultation to discuss your claim, contact Gunn Kieklak Dennis, LLP at (479) 439-9840. You may also contact the firm online.

Qualifications for Business Interruption Insurance in Arkansas

Business interruption insurance, or business income coverage, is used to reimburse a business owner for economic losses sustained due to a particular event, often a natural disaster. For example, if an earthquake made your restaurant unstable, you may seek business interruption insurance as you will lose money from being unable to host customers.

A business owner typically obtains business interruption insurance as part of a larger commercial insurance policy. Generally, in order for business interruption insurance to be triggered, the following requirements must be met:

  • Physical damage to property insured by a business owner
  • The damage incurred was covered under the insurance policy
  • The losses suffered by the business is quantifiable
  • The losses sustained caused a business interruption that will cost the company revenue

If an Arkansas business owner can prove these elements to their insurance company, the insurance company should provide them with reimbursement for lost income and other expenses. With the prevalence of COVID-19 throughout the United States, millions of business owners have filed business interruption claims. The compensation offered by insurance companies can mean the difference between a company continuing to do business or being forced to dissolve a company.

Our firm understands the gravity of seeking an insurance claim to keep your business afloat during this pandemic, and we are here to help you manage your claim against an insurance company. To learn more about factors considered for business interruption insurance, you should continue reading and speak with an experienced Arkansas commercial litigation attorney.

Common Causes of COVID-19 Business Interruption Insurance Denials

The COVID-19 pandemic has affected business and residents across Arkansas and the United States. With millions of companies having to shut down for an unspecified amount of time, many are worried they will not be able to open their doors ever again. As a result, a business owner may file for compensation from their insurance company on the basis of COVID-19 business interruption. Unfortunately, there are many business owners that are also being denied compensation by their insurance companies.

The primary reason that many COVID-19 business interruption claims are being denied is that it is not common practice for insurance companies to offer interruption insurance for a pandemic. As mentioned, many business interruption claims are filed after a business is destroyed or seriously damaged due to a natural disaster like an earthquake or a flood. COVID-19 business interruption insurance claims are different because no businesses have suffered structural damage that is often required to successfully file a business interruption claim.

If you are unsure about what your business insurance policy covers, it is vital to read through and determined what your insurance company will cover. While a pandemic may not be considered a covered peril under your insurance policy, you may have other options.

Many business interruption agreements contain provisions dealing with a need to close a business due to “civil authority.” A civil authority claim may arise when a public emergency causes a company to shut its doors for a limited amount of time. Depending on the provisions in your insurance policy, you may be able to file a COVID-19 business interruption claim based on civil authority.

If your insurance company denied your business interruption insurance claim during COVID-19 in Arkansas, we could help you determine appropriate legal steps to take next. With the number of business insurance claims being filed at the moment, it can be tedious trying to speak with a representative from your insurance company about the future of your business. This scenario may be even more frustrating if your insurance company is attempting to avoid liability for a business interruption claim.

Fortunately, you can file a lawsuit to pursue the compensation you deserve to keep your Arkansas business operating. If your insurance company does not honor your interruption claim, our firm can help you file a first-party lawsuit to enforce your insurance policy.

Contact Our Experienced Arkansas COVID-19 Business Interruption Claim Lawyers to Discuss Your Claim

If your insurance company denied your business interruption insurance claim, contact an experienced Arkansas COVID-19 business interruption claim attorney. The committed legal team at Gunn Kieklak Dennis, LLP, has fought for business owners of Arkansas for years, and we would be honored to work with you. To schedule a confidential legal consultation to discuss your claim, contact Gunn Kieklak Dennis, LLP at (479) 439-9840.