BI and COVID – Was your business wrongfully denied?

North Carolina restaurant owners are asking the state supreme court to hear their Business Interruption cases. 16 restaurants, along with some help from the North Carolina Restaurant and Lodging Association (NCRLA), are looking for coverage for their revenue losses brought about from COVID-19. This is in response to the decision made back in November of 2020, where a North Carolina court found that insurers did not clearly define a direct physical loss under their “all-risk” property insurance policies.
In the case North State Deli, LLC v. Cincinnati Insurance Co., the 16 policyholders had purchased “all-risk” policies, which covers all risks of direct loss unless the insurer clearly excludes a specific risk. The policies defined their “loss” as accidental physical loss or damage. However, they did not clearly state what an “accidental physical loss or damage” would entail. The court decided that the COVID-government shutdowns were, indeed, a direct physical loss, and found the insurers have been wrongfully denying more than 1,600 COVID-related business interruption cases.
Due to the substantial amount of business interruption claims, this could be a big win for policy holders across the country. COVID-related business interruption cases have ruled in favor of insurers all across the country. “North State Deli” along with the 16 restaurants who participated in the case have lost a combined $15 million in business income, with shutdowns ranging from six months to a year.
Your insurer could be wrongfully denying your claim. It is very likely that your insurance policy does not clearly define what a business interruption claim could entail. With the North Carolina courts finding that COVID-interruption claims do show a direct physical loss from the government shutdowns, it is possible that you could be covered for your business income loss.
Don’t let your insurer keep wrongfully denying your claim. Let our team at WorldClaim fight for what could be covered under your policy. Call us today and let our team review your policy for no obligation. We’re here to fight for you, the policy holder.
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