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Report: Many Florida Companies are Struggling to Get Business Interruption Claims Approved


With the COVID-19 pandemic and the subsequent government shutdowns, 2020 has been a difficult year for many businesses in Florida. Unfortunately, many of the companies that have suffered financial losses are struggling to get insurance coverage. Business interruption insurance is supposed to provide a cushion for companies forced to suspend or scale back operations.

According to a recent article from the Sun Sentinel, insurance companies are aggressively fighting business interruption claims. Small and mid-sized businesses that thought they were protected are struggling with their insurers. Here, our Florida business lawyers highlight three key takeaways from the report.

  1. Insurers Made Big Promises, But Failed to Deliver During COVID-19

 Along with other businesses, the Sun Sentinel highlights the story of Restaurant People of Fort Lauderdale—a company that owns and operates 14 restaurants in South Florida. Few industries have been hit harder by the COVID-19 pandemic than hospitality. A representative for the company estimates that they lost nearly 98 percent of their total revenue over a six week period during the height of the COVID-19 shutdowns last spring. Sadly, these big insurance companies have aggressively contested their business interruption claim. Despite paying large premiums for insurance they were told “covered everything”, they are struggling to get compensation when they need it. Their story is far from unique. 

  1. Insurance Companies Do Not Want Policyholders to File a Claim

One of the most striking observations included in the Sun Sentinel report is their finding that insurance companies are trying hard to dissuade companies from even filing a business interruption claim at all. The largest insurance industry trade groups in the United States have been sending out press releases every time a court decision goes their way. When policyholders fail to even try to bring a claim, the insurance company can rest easy knowing that it will not have to pay benefits.  

  1. You are Not Out of Options: Businesses Can Appeal a Denial

In many different ways, the COVID-19 pandemic is unprecedented. Many business interruption claims are still making their way through the courts. Different legal arguments are being advanced. Further, the specific facts of the case and language of a policy always matter. If you are having a hard time getting your business interruption claim paid, you are not necessarily out of options. Policyholders always retain the right to file an appeal. An experienced Florida commercial lawyer will review your case and help you take action to protect your interests.

Schedule a Fully Confidential Business Law Consultation Today

At Pike & Lustig, LLP, our West Palm Beach business litigation lawyers are skilled, solutions-driven advocates for clients. We have experience representing small and mid-sized companies in complex claims. If your business interruption claim was denied, we can help. Call us now for a confidential, no obligation consultation with a commercial law attorney. With conveniently located office locations, we represent companies and organizations throughout the whole region, including in Fort Lauderdale, Jupiter, Miami Beach, Hialeah, and Deerfield Beach.




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