As many of you may be aware by now, the reality that there is not coverage for a business that has business interruption insurance is starting to set in. The insurance companies are denying these claims as fast as they receive them. If the claim is filed as a pandemic and/or virus and that peril is not specified; you’re out of luck. If the business thought a civil authority shutdown would open coverage, well, wrong again. The insurance companies standing is very straightforward; if there is no physical damage to the business then there is no coverage. However, if we asked a business owner about their loss, there is definitely physical damage just by the mere fact the business cannot not function and operate. An absence of something such as an employee who is consider to have intellectual property to perform his or her duty should be deemed as a cause for physical damage. A machine and/or mechanical device that if left sitting dormant for a period of time that does not work properly, should be deemed physical damage. Unfortunately there has not been a ruling either on the state level or federal level that is twisting the arm of the insurance companies to pay these claims. Insurers are complaining if they did pay these claims it would cost in the billions and they would go out business. If that were happened, they would most likely complain they have been physically damaged because they can no longer afford to issue polices. Funny how that works…

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