Insurers May Double Down On COVID-19 Claims Denials

Companies that have business interruption insurance can file claims if they’re displaced by an emergency or have operations halted because of fires or natural disasters that cause psychical damage. Depending on the policy, the coverage can pay for losses, including income and employee wages. However, some insurance companies are doubling down on denials, fearing the payout could be too costly.

“There’s a real narrative being pushed by insurance agencies to the effect that there’s no coverage for COVID-19,” said Pillsbury Insurance Recovery & Advisory partner, Robert Wallan, who represents business owners in insurance claims. “The way they’re presenting it is wrong.”

Wallan said the argument by insurance companies claiming the virus doesn’t cause physical damage or displacement misses the point. Wallan believes that under California case law, contamination by viruses are grounds for “loss of use or damage to property.”

“Some policies may have specific exclusions for communicable disease, viruses and pandemics, but that’s a minority,” Wallan concluded.

Read the full story in The San Francisco Chronicle.