COVID-19 Insurance Claims & Disputes
Finding Answers & Helping Clients Protect Their Interests
At M. Ross & Associates, LLC, we know that businesses across all sectors of the economy are taking a huge hit as state and federal governments try to keep up with the COVID-19 pandemic. Some employers have been forced to shut down offices and shift to working remotely from home, while others are making massive layoffs and cutting back on crucial expenses just to keep from going out of business.
Understandably, business owners throughout New Jersey are wondering if their insurance policies will cover losses related to COVID-19. However, because the terms of individual policies vary by insurance carrier, and because "standardized" terms of coverage can be changed by endorsement so that they are only available to certain policyholders or industries, it can be very difficult to determine if a particular type of claim will be covered.
Workers Compensation Insurance
Although most bodily injury claims filed by employees will be covered by the employer’s workers’ compensation policy, these policies generally don’t cover “ordinary diseases of life," which are diseases that the general public is also exposed to. However, if an employee can establish a direct causal connection to their workplace and the virus, then they might be exempt from this policy exception. Learn more about obligations facing business owners in light of COVID-19.
Business Interruption Insurance
Many businesses have business interruption insurance in addition to commercial property insurance. While a commercial property policy covers direct physical loss or damage to a property caused by events such as earthquakes, heavy winds, and fire, a business interruption policy typically requires a "direct physical loss or damage" to property at the insured premises to receive payment from the coverage.
Owners of healthcare and hospitality businesses in New Jersey often carry policies that cover losses caused by communicable or infectious diseases, even if there isn’t any physical damage to the insured property. Our lawyers can review your business interruption insurance policy and your commercial coverage to determine if you are covered for losses caused by COVID-19.
Given the unique circumstances of the pandemic, many businesses are finding it challenging to interpret the specific provisions of their policies. It is important to scrutinize policy language to explore any potential avenues for claims related to COVID-19 impacts. New Jersey businesses in the service and retail industries, in particular, should be aware of any additional endorsements that may support their claims. We provide comprehensive evaluations to identify and maximize potential benefits under your policy.
Understanding New Jersey Insurance Regulations & Trends
New Jersey's insurance regulations are particularly nuanced, impacting how business insurance claims are processed. The state requires insurers to adhere strictly to the terms of the policy, particularly in instances involving catastrophic events like COVID-19. Business owners must be proactive in understanding these regulations to better navigate claims and disputes.
Additionally, recent trends show an increase in litigation surrounding denied COVID-19 related claims. This trend emphasizes the importance of having experienced legal counsel, such as an insurance defense lawyer in New Jersey, who can effectively negotiate and litigate insurance claims. Our firm closely monitors these developments to provide our clients with the most current advice and strategies for success.
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