Orlando businesses are struggling with an unprecedented, mass economic uncertainty, as they grapple with forced business closures and non-existent tourism—the lifeblood of the local economy.
If your business has suffered losses during the Coronavirus pandemic, these days are likely marked with furious accounting, as you project the future of your business and the viability of remaining in business, for how long, and with what cost, in terms of lay-offs and other concessions.
Many businesses have turned to their commercial business interruption insurance for some financial relief in this crisis, only to discover that their policies do not cover losses during a pandemic like COVID-19. This is why many businesses are looking to an Orlando business interruption lawyer for help.
For a review of the business interruption you are presently facing and the losses you have endured due to COVID-19, call Bogin, Munns & Munns today at (407) 578-9696.
The Aftermath of COVID-19 for Businesses
COVID-19 stunned the world. Seemingly from one day to the next, life as we knew it changed in just about every way imaginable. State and local governments ordered non-essential businesses to close, and even those qualified as essential suffered financial impacts as local economies and business slowed—or, for some, ground to a complete halt.
For many businesses, the prospects of recovering financially from their business losses, even after they finally re-open, look grim. Those that survive, face the possibility of future financial burdens if and when additional waves of the virus surface. Nobody seems able to predict with any confidence or consistency when businesses will begin to stabilize—or how long that stability will last.
Why Business Interruption Does Not Cover COVID-19
The sticking point for business interruption coverage lies in the wording of your policy. If you received a denial of your coverage, it may be due to a virus or pandemic exclusion. In the absence of such exclusions, insurers will likely struggle to justify a claim denial.
How Civil Authority Clauses Come Into Play
Civil authority clauses can work as an exclusion clause’s happy cousin. If a government entity issues an order that prevents access to a policyholder’s property, this clause kicks into gear. Such orders typically follow natural disasters, like hurricanes, floods, or tornadoes.
When we apply the civil authority clause to Orlando businesses and the COVID-19 pandemic, a possible actionable truth reveals itself. Recall that on March 23, the Orange County mayor issued a stay-at-home order in response to the coronavirus pandemic. Just over one week later, Governor Ron DeSantis issued a Stay at Home order for all of Florida residents.
These orders, combined with stay at home and business closure orders all over the country—and all across the globe—dealt a serious blow to Orlando businesses, in particular, many of which rely heavily on tourism traffic.
An Orlando business interruption lawyer can review your insurance policy’s terms of coverage and advise you of your eligibility for coverage. If such eligibility is not immediately clear, your lawyer can join other attorneys fighting for coverage on behalf of their clients. Call Bogin, Munns & Munns today at (407) 578-9696 for a case evaluation about your business interruption case.
Positive Moves Toward Financial Relief
The Orlando Sentinel reported that Orange County will offer grants to small businesses in the amount of $10,000. The grants will be funded by relief money ($72.9 million) from the federal CARES Act and will help around 6,500 local businesses with rent, vendor bills, and employee wages.
Although grants from the County are helpful, people still struggle with the principle of insurers’ not paying out on business interruption policies that owners bought with this type of emergency in mind.
It may offer business owners some comfort to know that legislators acknowledge the plight that businesses are facing—as well as the ripple effect it will have on the economy—and are working to rectify the situation. In March 2020, a bipartisan group from the House of Representatives penned a letter to some of the major insurance companies, making their case for insurers to cover business losses related to the COVID-19. In the letter, legislators argue that the financial pains businesses are facing due to the pandemic meet the threshold for business interruption coverage.
An Orlando Business Interruption Lawyer Can Navigate This Matter for You
The COVID-19 pandemic has unleashed a plethora of the unprecedented on Orlando, on Florida, the U.S., and the entire world—from schools and businesses to families and individuals. Much has to be sorted out in response to the novelty of these issues.
Rather than mire yourself in the headache of your business interruption coverage, consider letting Bogin, Munns & Munns handle it for you.
We will fight for your right for coverage, so you can focus on getting your business back in order. Call us today at (407) 578-9696 for a case evaluation.