Insurance coverage is possible because risk is spread among a large number of individuals or policyholders.  Insurance companies operate best when they can correctly predict the amount of losses those they insure will incur over a given period of time. The best example of this auto insurance. The risk is spread out among a very large number of individuals, and the number of accidents that will occur are relatively small against the large number of insureds.  Accident numbers can be predicted and extrapolated from years of prior statistics and other factors. 

Issues for insurance companies arise when claims are not predictable and the numbers of them skyrocket fay beyond that which was anticipated and prepared for.  This is proving to be the case in light of the recent pandemic. As many are filing business interruption (BI) claims, lawsuits are springing up as a result many of these claims are being denied. 

This may come as a shock to many individuals and business owners, especially since it has been so long since the country and world has faced such a large-scale pandemic.  When a large number of claims such as these BI claims spring up over the entire industry almost overnight, insurance companies tighten up and claims are denied at a rapid pace.  Most individuals and companies holding these policies might have assumed that having BI coverage would logically “cover” this sort of catastrophic event.  Many times however, these policies exclude pandemics and virus outbreaks.    

Just because your policy excludes pandemics, does not mean that you are not entitled to relief from your insurance company. The question arises as to how you can obtain money from your insurance company to keep your business afloat.  The first thing you would want to do is not panic and assume your claim will be denied and thus not bother filling one out.  Second, it is also a prudent measure to have an attorney review the specific language of your policy.  While it is true that many policies have exclusions for viruses and pandemics, the question of whether those policies are enforceable has yet to be adjudicated in most instances. There are also most likely many other areas of a policy where some recovery can be obtained in the event that an exclusion is upheld. The bottom line is to stay calm and focused and seek necessary advice if needed. Don't assume all hope is lost in the midst of hearing about all these denials and pending lawsuits.           

Under these unprecedented circumstances, the Kreamer Law Group is devoted to assisting you with your legal needs and questions. Our firm serves clients throughout the State of Illinois in State and Federal courts. If you are interested in a free consultation, please don't hesitate to call us at 630-995-3668.