It is typical for a business that pays a monthly premium for property insurance to place a claim when property damage occurs, but ultimately it is up to the insurance company to determine whether or not the claim should be paid out. When something happens and an injured party wants to collect damages, dealing with an uncooperative insurance company can sometimes evolve into a difficult legal battle. 

NBC reports that with the recent eruption of the COVID-19 pandemic leading to lockdowns and temporary business closures, many businesses are now filing claims for business interruption. Across the board, insurance companies are saying that while these businesses have paid their premiums, damages resulting from a pandemic are not covered. 

Others say that interruptions such as this should be covered, with a lawyer representing the recently formed Business Interruption Group going so far as to claim that the insurance industry is lying to the public. Representatives of the insurance industry, on the other hand, state that pandemics are not only unpredictable but, due to their widespread nature, uninsurable. 

One policy that NBC reviewed does not contain any mention of “pandemics,” but it does include an exclusion for “loss due to virus or bacteria.” While this may seem disputable, insurance companies say they are saving their claims for indisputably covered disasters such as wildfires or floods. 

This has now progressed to the point that lawsuits and even proposed legislation are being levied against insurance companies. As of yet, it is uncertain how this legal battle will pan out. 

When someone has difficulties working with an insurance company, it may be helpful to hire an attorney who practices insurance law. This can help navigate the complex bureaucracy of the insurance industry.