Many businesses that have suffered enormous losses due to mandated Coronavirus closures, have filed claims with their insurance companies. The most common claims are Business Interruption Claims for those who have an All Risk Policy with Civil Authority Coverage. Unfortunately, most Insurance Companies are finding reasons to deny these claims leaving business owners solely responsible for all financial losses. A Coronavirus Insurance Lawyer can help you determine the provisions in your insurance policy and the necessary steps to recover damages from a claim that has been denied.
How did we get to this point in the state of California?
As the Coronavirus (COVID-19) appeared throughout the state and the country, Governors and other elected officials raced to quell the spread of this infectious disease.
In California, as early as March 4th, Governor Newsom declared a State of Emergency to make resources available and to further protect the residents of the state. This action was quickly followed by school closures, cancellation of mass gatherings, and implementation of virtual meetings for government officials in the state.
The virus continued to spread and negatively affect the people of California. On March 19th, a Stay at Home Order was declared to protect the health and safety of the people of California. Only those designated as Critical Infrastructure Sectors, were able to operate their businesses.
This left numerous businesses no option, but to shut their doors and incur heavy financial losses.
Dine-in restaurants, bars and nightclubs, gyms and fitness centers, entertainment venues, public events and gatherings, hair and nail salons, and convention centers were all prevented from operating their businesses. As of May 11th, unemployment in California has reached 20% and this number could continue to grow.