It has been a year since the COVID-19 pandemic began and drastically changed the world and the way society functions.
This date is doubly important for business owners and policyholders who may not be aware that the deadline for filing a COVID-19 business interruption insurance claim is fast approaching. Depending on the specifics of your insurance policy, your contractual limitations period may have been as short as one year from the date you first suffered a financial loss — which means your deadline may be fast approaching — or already passed.
Our McAllen bad faith insurance lawyers at Millin & Millin want to provide you with insight on policy deadlines and what options you may have if you already missed it.
The first step business owners should take is to review their insurance policies and determine if a deadline exists. Business interruption and civil authority COVID-19 claims typically have suit limitation clauses that cap the amount of time you have to file a lawsuit against your insurer. These time limits usually last for one or two years.
It’s important to note that state laws vary on how insurance suit limitation clauses are treated. In some states, there are specific laws that essentially override these limitations, providing you with extra time to file a claim. On the other hand, some states strictly enforce suite limitation clauses.
In Texas, one factor that may affect your insurance policy is a force majeure or act of God clause. This factor essentially states that one or both parties may not have to perform specific obligations under a contract under certain circumstances. Your policy may have language that specifies pandemics or may include catch-all language.
If after reviewing your policy, you are still unsure if a deadline exists, you should reach out to your insurance provider and ask them to confirm any limitations in writing.
If you do have a deadline approaching, you’ll want to either file the suit immediately against your carrier, or request an extension. Make sure to get any extension agreement in writing and properly confirmed.
Knowing when the clock began is another important facet to determine, and doing so without the guidance of an experienced bad faith insurance lawyer can be quite a challenge. State laws usually determine when the suit limitation period began.
In some instances, the clock begins from when your provider first denies your claim. In other states, the period begins as soon as the financial loss occurs and can come to a close even if you are already in negotiations with your insurance provider. It’s vital to speak with a lawyer to ensure this isn’t the case and you don’t miss your opportunity to file a claim within the legal timeframe.
Unfortunately, there are many complexities to consider when filing a COVID-19 business interruption insurance claim. Factors such as the first positive case in the region, proof of community spread, and civil authority sanctions can all affect determining suit limitation periods.
Because of this, it is always in your best interest to be cautious when calculating a deadline, and always assume you have less time to file a suit.
If you have missed your deadline to file a suit against your insurance provider, your first step is to determine if there are statutes in place that extend the limitation. Our McAllen bad faith insurance lawyers can help you review all potential statutes and laws to uncover if any potential opportunities to still file a suit are beyond the time limitation.
You may also be able to argue that your provider waived its right to assert the limitations clause.
If these aren’t viable options, you may still be able to file a bad faith claim if it can be determined that your insurer failed to legally handle your claim as it should have.
As we progress further into 2021, it’s essential that you uncover any limitation deadlines that can negatively affect your business. Unfortunately, the pandemic has still not been fully controlled, and business all across the Rio Grande Valley, Texas, and the rest of the nation are still facing an uphill battle.
The support you receive from a business interruption claim can make all the difference in the world for your business, your finances, your family, and the livelihood of others.
That’s why you should reach out to Millin & Millin, PLLC, now!
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Life insurance is a valuable resource for anyone, as it pays out a lump sum to family and/or other dependents in the event you pass away during the term of the policy. A life insurance policy affords the peace of mind that loved ones will be financially protected in the event of your death, and that the money provided will be able to pay for expenses such as a mortgage, outstanding debts, living costs, and other expenditures.
Being aware of your life insurance policy and its coverage is important, especially right now with a global pandemic leading to much loss of life. The insurance lawyers of Millin & Millin want to provide you with some critical information that can help you to better understand life insurance at this point in time.
While COVID-19 has presented challenges across industries, the life insurance sector has largely been unaffected. Life insurers are not pulling out of the market, and as premiums remain steady, industry watchers are seeing COVID-related claims already being paid out, less than one year from the outset of the pandemic.
In most instances, traditional life insurance policies, including whole and term life, cover COVID-19 related deaths. There are, however, exceptions where a policyholder may have their claim denied by their insurance provider.
Reasons claims are denied frequently include:
An inaccurate or incomplete application may result in claim denial for reasons including not disclosing travel plans, not providing truthful information regarding income or even failing to accurately provide information about your health, such as your weight.
In the event that a policyholder loses their life within the first two years of coverage, an insurer will closely examine the claim and thoroughly review the initial application. It is important to be truthful and transparent throughout the application process, and policyholders are encouraged to ask questions should they not understand aspects of the application.
Should a policy lapse as a result of non-payment, it's likely a beneficiary will not receive a payout if the policy isn’t reinstated prior to the policyholder’s death. While most companies extend a 30 or 31-day grace period for late premium payments, you will remain covered as long as your insurance provider is paid within the allotted time.
In the midst of the pandemic, insurers may extend this grace period, with some state regulators already making these extensions a requirement. Insurance companies are willing to work with policyholders, and if you’re experiencing financial difficulties in making payments, it’s important to reach out to your insurer to discuss your options to avoid a lapse in coverage.
In the event of an accident, accidental death and dismemberment insurance (AD&D) is another form of coverage that can provide a payout. However, if a person dies as a result of illness or disease, an AD&D policy will not be paid out. AD&D coverage is sometimes added to a standard life insurance policy as a rider, and in those instances, the primary policy will payout in the event of a COVID-19 related death.
It’s important to understand your insurance coverage and your rights.
In the unfortunate event that you should lose a loved one and have a viable insurance claim denied, the insurance lawyer of Millin & Millin can help to right the wrongs done against you. We have years of experience handling bad faith insurers and can make sure you get what is owed to you.
The owner of Cheers in Boston is suing its insurance carriers over what it claims was a wrongful denial of its business interruption insurance claims. Hampshire House, the owner of five restaurants and a distribution center, claims to have lost millions of dollars due to the pandemic.
As the novel coronavirus spread across the globe earlier this year, businesses closed and residents stayed inside in an effort to stem the tide of coronavirus cases. In the months since those closures, many businesses have faced a business coverage denial by their insurance carriers. In some instances, business owners are claiming that their carrier is wrongfully denying these insurance claims based on ambiguous policy language that legally should be interpreted in the policyholder’s favor.
The Hampshire House lawsuit is filed against Fireman’s Fund Insurance and Associated Indemnity Corporation, as well as their parent company Allianz Global Risks United States Insurance Company.
The suit against the company argues that it breached its contract with Hampshire House and failed to act in good faith.
“Hampshire (like others who purchase business interruption insurance) has faithfully paid its premiums. Yet, when Hampshire made a claim because of a catastrophic business interruption caused by state and local emergency orders, the defendants summarily and arbitrarily denied Hampshire’s claims,” the plaintiffs argue, according to the Boston article.
Hampshire House closed all of its facilities as a result of the pandemic and a state order issued earlier this year. The Cheers locations also relied heavily on tourism, according to the suit. Hampshire House continues to pay insurance premiums of up to six figures. It carries $10 million in business interruption insurance and estimates losses of several million dollars.
“Hampshire (like many businesses) has relied on its business interruption insurance to cover what it is supposed to cover – replacement of business income and payment of ongoing expenses in order to rebuild its businesses,” the filing states.
The suit argues that Allianz instituted a practice regarding COVID-19 insurance claims that led to “improper denial of countless business interruption claims”. Plaintiffs cite a post on the carrier’s website regarding coronavirus claims that read, “In general, any standard property and business interruption coverage must be triggered by physical loss or damage to property at an insured location and infectious disease is usually not a covered peril.”
Hampshire House argues that Allianz failed to make a “good faith investigation, determine coverage and adjust Hampshire’s claims because defendants reached a pre-determined conclusion to deny coverage”.
Attorneys for Hampshire House argue that insurance policies have long been interpreted in the policy holder’s favor by the court. This is allegedly largely due to the fact that these policies are created and sold by carriers in an effort to make money. Language that is ambiguous or “attempted catch all language” should be interpreted in the policyholder’s favor.
“While the insurance industry may cry afoul about their bottom line, too many small business owners, restaurant owners, gym owners, hotel owners, and medical providers are staring bankruptcy in the face,” attorneys for Hampshire House wrote in a statement. “This is a survival moment and all options must be on the table.”
Many business owners are filing business interruption claims for the first time this year. As COVID-19 has spread across the globe, shutdowns and social distancing have necessarily followed it. Businesses that rely on a healthy economy are finding themselves facing substantial financial difficulties.
One way to seek financial support for the time your business will be closed is through a business interruption insurance claim. Unfortunately, insurance carriers know that an unprecedented number of businesses will be looking for help, and they will likely try to deny as many claims as they can to save themselves money.
In fact, insurance companies have already begun lobbying with state and federal legislatures in order to argue they shouldn’t be made to pay these claims.
If you’ve been denied a business interruption insurance claim, the insurance lawyers of Millin and Millin can help you find a way to get the compensation you need. We would be proud to negotiate on your behalf with your insurance or in a court of law.
If your business interruption claim has been denied, don’t give up hope. Many businesses are making these claims due to the novel coronavirus pandemic, and insurance companies are attempting to avoid paying out as many claims as possible.
Carriers may send out notices to policyholders telling them their claims will be denied, but you should still file if you need coverage.
There are also many ways you can argue for your right to coverage. While this may mean that you will need to adjust your claim in order to be successful, you should not accept a denial as the final answer. Circumstances surrounding the coronavirus are unique, and because of this, the process may take more adjusting than is usual but that does not mean it is impossible.
Another important part of filing and arguing an insurance claim, especially in these circumstances, is understanding your insurance policy. These policies aren’t light reading, but it’s important to have an understanding of what exactly your insurance covers.
For instance, a policy may deny claims strictly related to a virus, but there may be coverage for business interruptions related to a civil authority’s shutdown. Finding a way to argue your claim is key, which brings us to our last point.
Insurance policies can be very complex and often use “legalize” or complicated language that can confuse the average individual, so it is vital that you consult with an insurance attorney as soon as you possibly can.
A lawyer can help you fight your insurance denial while you deal with other concerns caused by the interruption. Plus, utilizing the knowledge and assistance of an attorney can give you the peace of mind that you’re doing all you can to fight the denial.
Business owners are going through an incredibly difficult time. Many people are facing sickness and financial hardships, and businesses that rely on a stable economy are fighting to make ends meet.
At Millin and Millin, we know that running a business isn’t easy in the best of times. When an insurance carrier denies a business interruption claim that you need, that doesn’t make business any easier.
Let us help you fight your business interruption claim denial so that you can start getting back on your feet.
COVID-19 has monumentally shifted how the world does business, putting a great deal of small business owners in financial hardship. While the government has given small businesses and large corporations some monetary relief, the case still stands that business owners are living through a time of great financial turmoil.
Business interruption insurance might be the only form of survival throughout this time of slowed business. Unfortunately, some insurance providers have taken measures to prevent businesses from getting the assistance they most definitely deserve.
But there is still hope. The trusted team at Millin & Millin is willing to work tirelessly to fight for your rights during these (financially) trying times, and guide you through all there is to know about business interruption insurance claims.
Business interruption insurance is a crucial topic throughout this pandemic. Many business owners have been forced to close down operations, causing detrimental losses for many businesses across the US.
There are several aspects that determine whether or not you will be able to obtain financial aid through your business interruption policy. Factors that will affect eligibility may include the state where the policy is located, the type of business covered, and whether the policy-holder is a franchisee or franchisor.
Business interruption insurance is meant to protect business owners against financial strain in times when going about normal business isn’t possible. Usually, a business interruption insurance policy is established to handle costs including lost revenue, daily expenses, rent bills, and other financial losses.
Business interruption insurance can offer relief for numerous unprecedented situations. Certain companies have claimed coverage for cybersecurity breaches, while others have received aid upon product recalls.
Unfortunately, lots of insurance providers have found ways to deny valid claims made by policyholders, but you don’t have to accept this as your final determination. The court system is designed to protect policy owners from unjust treatment by insurers.
Note that before you can get any sort of financial recovery aid, you have to initiate a claim.
The first thing you’ll need to do is verify whether your business qualifies. You can begin this process by seeking a copy of your current business insurance policy and declaration page. Your insurance agent or a lawyer can assist you with this, as the language and wording in your policy can be quite complicated. It’s possible that your policy might include additional contingent coverage for diseases like COVID-19.
Once that’s settled, you can then file a claim, and keep track of deadlines. Timing matters when handling insurance claims, and whether your policy’s time frame calls for 60, 90, or 180-day claim notice, you’ll have to work within these time frames.
Calling or emailing your insurance provider is a great place to start with the claims process.
To present your claim for consideration, you must carefully examine the damage you’ve suffered and document those losses. These include loss of sales, extra expenses such as payroll, rent, materials, and replacement inventory. Make sure to also take note of sales trends and business cycles to concisely demonstrate coronavirus-related losses.
Other factors you’ll have to look into in this time are periods for restoration, along with your attempts to subsidize losses. By keeping all the necessary documents and remaining in touch with your insurance provider, you may give yourself a fair shot at securing coverage.
If for whatever reason your claims are still rejected, there are other approaches toward recovery aid.
If you believe you’re entitled to financial recovery due to COVID-19, the team at Millin & Millin can help.
Our well-versed insurance attorneys can thoroughly go over your insurance policy, and with that information, help you develop a plan of action for getting you the coverage you deserve.
Contact us today at (956) 631-5600 for a free case review and for some peace of mind through these financially trying times.
Trying to stay healthy and safe during the coronavirus pandemic is at the forefront of everyone’s mind right now. However, in order for social distancing to take place and be effective, businesses have had to adjust to local, state and federal mandated orders to either shut down operations or alter them significantly.
These changes have greatly affected the revenue business owners would normally bring in during this time frame. In order to stay afloat and provide for employees, many companies have been making claims against their business interruption insurance.
Due to the widespread need for financial help right now, insurance companies have been less accommodating to claims that are being filed.
If your insurance company is acting in bad faith and failing to properly deal with your claim, the team at Millin & Millin want to represent you. We can challenge insurers who refuse to provide you compensation and ensure you obtain the coverage that is rightfully owed to you.
For a business interruption claim to be accepted, there needs to be evidence of property damage and physical loss of use of certain kinds of assets. When these kinds of claims are approved, it’s typically due to the aftermath of natural disasters, fires or acts that damage the physical aspects of your business.
The challenge business owners are currently facing boils down to the lack of insurance law on viral pandemics. While these are unprecedented times, and the need for business interruption claims are widespread, businesses aren’t getting the help they need.
Part of the reluctance of insurers is their own efforts to save money, which causes the denial of viable claims. Because there aren’t specific laws in place regarding interruption claims made during a pandemic, it has been difficult for business owners all across the company to receive help from their insurers.
However, this doesn’t mean it isn’t worth your time to seek out restitution with the support of qualified insurance attorneys who can handle bad faith claims.
In an article from the Chicago Tribune, Thomas Bentz, an attorney on the insurance industry team at Holland & Knight said that the fight insurance companies are putting up boils down to economics.
Insurance doesn’t work where everyone has the same loss at the same time. If you have 100% loss across your portfolio, it’s not sustainable,” Bentz says.
The article also covered how new bills are being introduced across the country to require insurance carriers to cover business interruption claims filed due to Covid-19. This is progress and evidence that the government is holding insurance companies accountable for the new reality we are all living in. Unfortunately, these bills are not being passed in ALL states.
Millin & Millin has been working aggressively for the past two decades to represent individuals dealing with bad faith insurance companies. With our support, we’ll see to it that you are fully compensated so that you can preserve your company during these trying times.
For two decades, Millin & Millin, PLLC has represented hundreds of policyholders in their fight against insurance companies who wrongfully denied or underpaid their commercial property insurance claims. During this time, our firm has litigated claims for business interruption and property damage for hotels, retail centers, churches, office buildings, warehouses, and public schools all over the country.
Due to the government’s decision to issue shelter-in-place orders because of the COVID-19 virus, we know that many business owners are suffering tremendous losses in revenue. While many have coverage for business interruption and orders issued by a civil authority, we expect the industry to attempt to avoid paying trillions of dollars in legitimate claims. Insurance agents and adjusters will tell you that your building must sustain “direct physical loss or damage” before coverage is triggered, but we know this is not always the case.
Simply put, insurers will save themselves money by issuing a broad range of wrongful denials, and they will eventually settle the relatively small proportion of lawsuits filed by policyholders who are willing to fight for what is rightfully their money. Millin & Millin, PLLC is uniquely qualified to represent consumers like you in this battle. Call or email us today so that we can conduct a free review of your policy and provide you with advice you need to make the appropriate decision for your business during this tumultuous time.
For two decades, Millin & Millin, PLLC has represented hundreds of policyholders in their fight against insurance companies who wrongfully denied or underpaid their commercial property insurance claims. During this time, our firm has litigated claims for business interruption and property damage for hotels, retail centers, churches, office buildings, warehouses, and public schools all over the country.
Due to the government’s decision to issue shelter-in-place orders because of the COVID-19 virus, we know that many business owners are suffering tremendous losses in revenue. While many have coverage for business interruption and orders issued by a civil authority, we expect the industry to attempt to avoid paying trillions of dollars in legitimate claims. Insurance agents and adjusters will tell you that your building must sustain “direct physical loss or damage” before coverage is triggered, but we know this is not always the case.
Simply put, insurers will save themselves money by issuing a broad range of wrongful denials, and they will eventually settle the relatively small proportion of lawsuits filed by policyholders who are willing to fight for what is rightfully their money. Millin & Millin, PLLC is uniquely qualified to represent consumers like you in this battle. Call or email us today so that we can conduct a free review of your policy and provide you with advice you need to make the appropriate decision for your business during this tumultuous time.
