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What Does the Maryland Insurance Administration Advise About COVID-19/Coronavirus Business Interruption Insurance Claims?

The coronavirus /COVID-19 pandemic has abruptly stopped the revenue streams of Maryland business owners. It is anticipated that the insurance industry, as a whole, will  routinely deny business interruption and loss of business income claims as a matter of course. "The Maryland Insurance Administration is an independent State agency charged with regulating Maryland’s $28.5 billion insurance industry."  The MIA has issued guidance on the proper course of action for a business owner struggling with mandatory business closure due to the COVID-19/ coronavirus pandemic.

"We recommend that businesses review their policies and reach out to their insurance professionals with any questions." 1

A thorough review of any policy is the mandatory first step in assessing a valid business interruption claim. Each policy is unique, and a thorough understanding of terms of the insurance policy is a key role of a business interruption claim attorney. The general framework I employ in establishing coverage is to demonstrate:

Many states are considering legislation that would require the insurance companies to pay for business losses related to COVID-19/ Coronavirus closures. As of this writing, Maryland is not one of those states.

I wholly agree with the Maryland Insurance Administration. I've developed a standard protocol that I suggest taking if you are considering a coronavirus / COVID-19 related business interruption or loss of income.

I battle insurance companies that have denied claims every day. I’ve litigated thousands of such disputes over the course of my career. If your business has been closed by the State, I’d be happy to discuss your coverage, losses and potential claims with you in a manner of your choosing. Please fill out the contact form on the site, or call me directly at 410-591-2835.

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FN1 https://insurance.maryland.gov/Pages/newscenter/NewsDetails.aspx?NR=2020256

FN 2 Some States have issued advisories with positions similar to Maryland:

Notice: Business Interruption Insurance and the Novel Coronavirus

Consumer Alert: Business Interruption Insurance and COVID-19

Commissioner Lara requires insurance companies to fairly investigate all business interruption claims caused by COVID-19

 

410-657-5962