While most business owners are probably familiar with the more common types of insurance claims, they may be at a loss when it comes to seeking coverage for more rare types of damage. After a year like 2020, business owners are probably dealing with some pretty rare kinds of losses.
Thankfully, those losses may be covered by a civil authority clause.
While a civil authority clause may offer coverage for losses caused by coronavirus restrictions, making a successful claim under this provision can be difficult, partially due to coronavirus claims being a new type of claim without clear precedents. Because of this, insurance companies may attempt to deny these claims using bad faith tactics.
Today, your McAllen bad faith insurance lawyers at Millin & Millin will go in depth regarding what you should know about civil authority coverage.
A civil authority clause is a provision of some business interruption insurance policies meant to protect the policyholder from the financial damage caused by a closure that was a result of orders made by a government official or other civil authority.
Essentially, if your business is closed after the government has prohibited access due to a natural disaster, you may be able to file an insurance claim under a civil authority clause.
It’s worth remembering that, under these forms of clauses, coverage is offered based on damage done to property other than the insured property itself. This means that if your store was damaged by a hurricane, you probably wouldn’t file a civil authority claim. However, if the hurricane caused damage to the road that once gave access to your business and authorities declared access to the affected area prohibited, then you may be able to make a civil authority claim.
A local or state government or other civil authority may order evictions or prohibit access to regions for many different reasons. A civil authority clause may include these, as well as a few other types of damages:
Keep in mind that not every civil authority clause will cover all of these types of closures. Insurance companies will use the specific language in your policy in an effort to argue against your claim.
If your civil authority closure business interruption claim has been denied, you may want to speak to a bad faith insurance attorney to determine whether or not your claim was wrongfully rejected.
Due to the relative unfamiliarity of coronavirus-related business interruption claims, certain insurers have used bad faith tactics to deny rightful coverage. Nevertheless, there are also ways that these claims can be denied that don’t necessarily constitute bad faith:
This list of possible denial justifications is non-exhaustive, and just because your insurer is using one of these arguments doesn’t mean that they are in the right to do so. If you have any reason to believe that your business interruption claim was wrongfully denied, reach out to the bad faith insurance attorneys of Millin & Millin for an argument that stands strong in your favor.
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The 2017 hurricane season was the most expensive in U.S. history, causing over $200 billion in damages. This was especially true of Harvey in Texas.
As a business owner in the Rio Grande Valley, your business is much more susceptible to flooding, hurricane damages, and other weather-related damages. While commercial property insurance will help to cover physical damages to your business, Business Interruption Insurance (also known as Business Income Insurance) helps to cover expenses and lost income that come as a result of the disaster.
With the 2018 hurricane season underway, now is the time to consider purchasing Business Interruption Insurance. If you are unfamiliar with how it can protect your business after a major catastrophe, your bad faith insurance claim lawyers at Millin & Millin would like to inform you about how it can be the protection you need to save your business.
Please consider the following information.
Business interruption insurance is an additional rider that you can purchase from your commercial property insurance provider or other specialized agency. There are various types of this insurance which cover a variety of different situations and damages including:
Extended and contingent coverages can be purchased as additional riders of regular business interruption insurance.
What your policy covers is dependent on the business assets that you want to protect. Every policy will be unique to a business owner’s specific needs. As always, it is important that you read through the policy and have a solid understanding of the coverage.
Generally, business interruption insurance can cover and protect:
Coverage is triggered when an incident - as specified by the contract - causes damage to your business and extends for however long as determined by the policy. Please be aware that business interruption insurance is limited and any losses that exceed those limits are the responsibility of the business owner(s).
There are a number of factors that play into the amount of coverage your business needs. Consider the following when determining what level of coverage you may need:
In an area like the Rio Grande Valley, which can experience a major disaster like a hurricane, it is important to have coverage that will protect your business for more than a few days.
However, even with the right commercial property insurances in place, your insurer may attempt to underpay or outright deny a valid claim. When this happens, don’t allow bad faith insurance tactics to derail you or your business. Depend on the responsiveness of the bad faith insurance legal team of Millin & Millin to get you the justice you deserve when seeking your rightful compensation after a natural disaster like a hurricane.
Contact us today at (956) 631-5600 to get the legal representation you need. Millin & Millin serves the greater McAllen metro area and the whole Rio Grande Valley.
Texas had a rough 2017 hurricane season with Harvey causing major damage to southeast Texas and the Houston metro area. Unfortunately, forecasts from North Carolina State University and Colorado State University are predicting another above-average season for 2018.
It’s important for residents living along the Gulf Coast and in the Rio Grande Valley to begin preparing now for the 2018 hurricane season, which starts June 1st. While residents of deep south Texas have been fortunate to avoid any major storms in some years, all it takes is one hurricane to devastate your home and property.
Don’t wait until it’s too late.
Failing to have the right insurance coverage in place can leave you with a financial burden that may be too difficult to carry. Your insurance claims lawyers at Millin & Millin want to remind you to check your homeowners insurance coverage now in order to protect yourself from any future hurricane-related damages that might occur.
Remember - “An ounce of prevention is worth a pound of cure.”
If you aren’t sure what exactly to look for in your insurance contract or what types of insurances you need to protect yourself during this hurricane season, please consider the following.
Flood Coverage
During Hurricane Harvey, only 30% of home damages were effectively covered. Property analytics firm CoreLogic found that the vast majority of homes in the path of Hurricane Harvey did not have adequate flood coverage, which means homeowners had to cover more than 70% of damages out of their own pocket.
While you may have general homeowners insurance, you should be aware that most coverages do not offer protection from flooding. Failing to have this protection can leave you in an extremely difficult financial position. Do not wait to protect yourself.
Flood insurance may be purchased through your insurance company or another agency participating in the National Flood Insurance Program (NFIP). If you cannot find a provider, please contact the NFIP Referral Call Center at 1-800-427-4661.
Coverage for High-Value Personal Items
Another coverage that can prove to be vital for protecting your valuables is a high-value personal possession rider. For items such as jewelry, artwork, collectibles, and other types of expensive personal property, this type of coverage works well.
There is generally an appraisal process in order to properly value the item and to ensure you are paying sufficient premiums for it. If you are afraid of having a family heirloom or luxury item become damaged, obtaining high-value personal item coverage should be a top priority.
Temporary Living Expenses
Depending on the type of home insurance coverage you have, temporary living expenses may be fully or partially covered. A few of these expenses covered include:
Thoroughly check your policy to see if any temporary living expenses are covered and for how long.
Pay Attention to Your Deductible
Even with the right amount of coverage, too high of a deductible can still leave you in financial trouble. You’ll need to do a review of your policy and make sure that you have enough money set aside to pay the deductible in case of an emergency.
If you are unable to pay the deductible right away, it can become more challenging over time to obtain the benefits that are rightfully yours.
Protecting Your Family
Protecting your home and property is of utmost importance but we know that keeping your family safe is your number one priority. Luckily, there is usually enough warning time to prepare your family for a hurricane. Some of the most important steps you can take to protect your loved ones include:
You’ll also want to make sure that all important documents, including your homeowners insurance policy, are in a safe place where they cannot be destroyed.
If you are having to file a home insurance claim, it’s likely due to the fact that you just dealt a terrible event. Having to deal with the bad faith tactics of an insurance company is the last thing you need on your plate during this time.
Depend on the responsiveness of the insurance claims legal team of Millin & Millin to get you the justice you deserve when seeking compensation after a natural disaster like a hurricane.
