Business Interruption Update – Brown’s Gym

A Pennsylvania gym is one step closer to being covered for business interruption (BI). Brown’s Gym out of Clarks Summit, PA, filed suit against their insurer, Cincinnati Insurance Co., for not covering their business interruption brought on by COVID-19. The court has decided not to dismiss the case and will continue on to determine how much of Brown’s policy is covered.
Insurers typically deny claims of COVID-19 business interruption due to the official definition of a BI, which is coverage for the loss of income a business suffers from any direct physical loss or damage. Judge Terrence R. Nealon ruled that Brown’s Gym did, in fact, have a direct physical loss, and the gym is on the verge of being compensated under their policy after several failed attempts from other small businesses. This decision could mean that your small business may be covered for business interruption. WorldClaim and our team of professional Public Adjusters will fight to make sure you are compensated to its fullest amount allowable under your policy. The ability to save your business from closing its doors for good is just one phone call away.
Judge Nealon attributes his decision to the language and well-established principles under Cincinnati’s policy. Under the company’s plan it states that the policy does not have a virus or pandemic exclusion. However, it does contain a communicable disease or virus exclusion for “crisis event response communication expense” coverage. Judge Nealon argues that it was easy for Brown’s Gym to assume that their COVID losses would be covered under their policy due to the language in the policy itself.
Brown’s Gym is ultimately seeking full approval for their COVID-related losses to be fully recovered. They are also alleging breach of insurance agreement and insurer bad faith.
This is big news for Brown’s Gym and for many other business owners out there. Your insurance provider may be wrongfully denying your claim. It is highly encouraged to let a public adjuster review your policy and see what is covered. Who better than WorldClaim to help?
Our team of professionals are trained to review any policy and are more than happy to help you through this process. Don’t let your insurer deny your claim without your policy being carefully reviewed by our staff. We will happily review your policy with no obligation. Give us a call and let us show you what it means to “get to know the WorldClaim difference.”