Many small business owners here in the greater Miami area have suffered financially through COVID-19. Particularly devastating is discovering that the business interruption insurance policy they thought would protect their operation has a pandemic exclusion.
The purpose of business insurance is to provide income replacement during a period of business interruption due to covered causes in order to help the company remain viable and able to continue to pay operating expenses and other overhead costs until the company can resume business.
Business interruption insurance is a valuable resource, but it only covers exactly what is written in the agreement and only for the time period or up to the dollar amount agreed upon. There are, however, opportunities for policyholders to appeal the insurance company’s definitions, that is, to argue that their particular circumstance falls under their coverage guidelines.