Business insurance is in place to provide compensation for losses. Whether they’re due to natural disasters or thefts, the monetary support should provide a way to get back on your feet. However, when it comes to closures due to the COVID-19 pandemic, filing an interruption claim becomes difficult and can sometimes lead to a lawsuit. Consider the following to determine how best to recoup your losses.

Business Interruption Claims

Business interruption insurance is for companies that lose a portion of their income due to damaging circumstances. For example, if a business had to close because an employee came down with the coronavirus, they would likely be eligible for coverage. However, those that closed as a precautionary measure might not be so lucky. It depends on the unique circumstances surrounding each claim and the specific legislation of each state.

Recent Litigation

Lawsuits are common when companies don’t receive the coverage they require. One business in Philadelphia alleged that their insurance broker was refusing to provide the more than $50,000 of lost income that occurred during the government-ordered shutdown. The insurance company came back with a clause in the policy that excludes the loss of income during the pandemic. In the end, the business withdrew its lawsuit and decided to find another way to move forward.

Business Insurance in North Carolina

Policies in North Carolina cover losses from direct interruptions to operations. These most commonly come in the form of natural disasters and physical damage to the building. Since shutting down to protect against the virus doesn’t fall under that category, insurance agencies may reject the claims. However, if you can present evidence that the virus was present in the building and required costly remediation, you might have a valid case.

Ensure the right protections are in place for your business by reaching out to IGO Insurance of Raleigh, NC. These professionals have been in the industry since 1970, expanding in 2013 to include business insurance. With competitive rates and friendly customer service, they’re ready to help with all your needs. Call (919) 782-1560 to set up an appointment, or visit their website to learn more about their coverage options.