COVID 19 / Corona Virus Business Interruption Attorney
Lawyer Don D’Aunoy offers free case consultations to business owners with potential Business Interruption Claims against insurance companies.
Louisiana’s Governor closed many business during the quarantine. Consequently, many businesses were not able to make income. Many business owners and managers are now looking to their Commercial Property Insurance Policies, Commercial General Liability Policies and Renters Insurance Policies for provisions that may cover their losses.
Lawyer Don D’Aunoy has answered several common questions and published the questions and answers below.
Just click on the question below for the answer.
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What do I need to do to get a free case consultation for my business interruption claim?
Anyone looking to obtain a free case consultation for their business interruption claim
should do the following:
a. Call the Law Office of Donald D’Aunoy today at 504-508-6414.
b. Obtain a copy of your Commercial Property Insurance Policy, Commercial General Liability Policy or Renters Insurance Policy, including the Declaration Page, Exclusions and Endorsements.
c. Accumulate bookkeeping records documenting your business’ pre-COVID 19 quarantine profits/revenue.
d. Accumulate bookkeeping records documenting your business’ profits during the quarantine.
e. Accumulate other costs associated with the quarantine, such as cleaning and moving costs.
f. Act quickly because there will be limited time to make interruption claims and file suit.
What is business interruption insurance?
Business Interruption Insurance is usually contained as part of a business’ Commercial Property Insurance Policy, Commercial General Liability Policy or Renters Insurance Policy. Business Interruption Insurance is also called Business Income Insurance. This type of insurance is used to pay for a business’ lost profits/revenue, bills (e.g., electricity, mortgage/rent, insurance premiums, etc.), repair/cleaning costs, and moving costs during a natural disaster. This type of insurance is often used in Louisiana after Hurricanes when businesses are shut down due to an evacuation or structural damage. But there will be a concerted effort to make insurance companies pay for lost business revenue during the COVID 19/Corona Virus quarantine.
What if my insurance company denied my claim?
Do not take “no” for an answer! Many insurance companies are denying all business interruption claims in the wake of the COVID 19 quarantine. The reasons being given are various. One main reason is the claim that business interruption insurance was not designed for pandemics where business property does not suffer structural damage. But whether the COVID 19 virus will be considered to have damaged property still needs to be addressed by the Louisiana court system and legislature. Not all insurance claims will have to be paid. Some explicit policy exclusions will likely hold up in court, but there is no risk that a business owner takes in contacting Law Office of Donald D’Aunoy. Lawyer Don D’Aunoy works on a contingency fee in all cases, so if he does not recover for you, you do not owe him anything.
What are the different types of business interruption insurance?
The are several different types of business loss insurance that may apply to your business losses during COVID 19:
a. Business Interruption: This coverage requires that damage has been done to a business’ property preventing business operations resulting in revenue loss. Whether the Louisiana court system and legislature will declare that COVID 19 caused property damage is still an open question. But the chances are good since the virus can contaminate surface areas and lead to infection through use of the property.
b. Service Interruption: This coverage applies when a business suffers loss of revenue as the result of the loss of utilities necessary for the company to operate—for instance, electrical lines, sewage system, phone and internet services.
c. Contingent Business Interruption: This coverage applies when a business loses profits because there is a “break in the supply chain.” This occurs when a supplier of the business suffers a loss preventing the supply of essential merchandise or services to the covered business causing the covered business to shut down.
d. Leader Property: This coverage pays lost revenue to a covered business when a neighboring business essential to attracting business to the covered property is shut down. An example of this would be a kiosk store in a shopping mall. If the shopping mall is shut down, the kiosk store has to shut down as well.
e. Interruption by Civil or Military Authority: This coverage applies to actual revenue losses sustained by a shutdown of the covered business ordered by the government.
How do I find out if my business is covered with business interruption?
You can call your agent that issued your business’ Commercial Property Insurance Policy, Commercial General Liability Policy or Renters Insurance Policy and ask for a copy to be emailed to you. Ask to be sent the entire policy, including the Declaration Page, Exclusions and Endorsements. Your agent will also be able to tell you if you have the coverage. But do not take your agent’s word for it that the coverage does not apply to your losses sustained as the result of COVID 19.
Will it cost me anything up front to retain Law Office of Donald D’Aunoy to handle my business interruption claim?
No. Law Office of Donald D’Aunoy Jr. handles all cases on contingency fee meaning that a client does not have to pay the firm unless the firm obtains a settlement or judgement for the client.
What types of damages can I receive compensation for in a business interruption claim?
If your policy covers you for business interruption losses, the policy will explain what types of damages the policy will compensate you for. Common damages reimbursable under a business interruption policy include:
a. Lost Profits or Revenue of the Business
b. Utility bill (e.g., electricity, internet, mortgage, insurance premiums)
c. Cleanup costs in cases where your business needs to be disinfected before reopening
d. Temporary relocation costs in cases where your business if forced to move as a result of the loss.
Will certain exclusions in my policy prevent me from recovering on a business interruption claim?
It is too early to tell what exclusions will hold up in court during the upcoming COVID 19 litigation. Obviously, the most damning exclusion in a Business Interruption Policy is damages caused as a result of viruses and pandemics. COVID 19 is obviously a virus and would fit within these types of exclusions. However, some state legislatures are enacting laws that will retroactively apply and force insurance companies to pay COVID 19 claims notwithstanding policy exclusions. Whether this will hold up in court has yet to be seen.
Can my insurance company be in Bad Faith for the way it handles my business interruption claim?
Yes. The insurance companies that you have policies with have a duty to act in Good Faith in the way that they handle the claims you make on your policies. If your insurance company does not treat you fairly and denies a viable claim that you make, your insurance company will be considered to have acted in Bad Faith. This may give rise to additional money damages and attorney fees. Typically, your insurance company has 30 days to pay a claim after you send it satisfactory proof of your covered losses. If it pays your damages late or fails to pay all of your covered damages, a lawsuit should be filed alleging Bad Faith and asking the court for an award of (1) the money damages actually owed; (2) other money damages caused by the mishandling of the claim, and (3) attorney fees and costs for having to file a lawsuit.
Lawyer Don D’Aunoy is committed to helping clients in the aftermath of the COVID 19 quarantine. He believes that in the midst of every crisis, there arises an opportunity to help his fellows. The aftershock of COVID 19 will not be any different. If you have a Business Interruption Policy and would like to determine if you have a viable claim, contact Law Office of Donald D’Aunoy Jr. today for a free case consultation. The office can be reached at 504-508- 6414. Lawyer Don D’Aunoy has office locations in Metairie, Kenner and Laplace. He can also be reached by email at don@lawyerdon.com.
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Lawyer Don represents clients injured in pedestrian accidents and accidents involving the following vehicles:
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Case Process
Lawyer Don performs the following tasks within 48 hours of representation:
- Starts a formal claim with the defendants
- Helps resolve property damage issues
- Requests all accident reports and insurance information
- Determines whether the client is receiving appropriate medical treatment
- Collects important information from the accident, including taking photos
- Requests the client’s medical reports and bills since the accident
- Schedules an in person update meeting with the client within 30 days
- Keeps clients informed of incurred costs and expenses
Lawyer Don believes in regular update meetings with his clients. He personally meets with each of his clients at least once every two months. Furthermore, if Lawyer Don does not speak with his clients when they call, he returns their calls within 24 hours.
Community Resources
United States Court of Appeals for the Fifth Circuit
600 Camp Street, New Orleans, LA 70130
Clerk of Court: (504) 310-7700
http://www.ca5.uscourts.gov/
United States Eastern District of Louisiana
500 Poydras Street
New Orleans, Louisiana 70130
Clerk of Court: (504) 589-7600
http://www.laed.uscourts.gov/
Louisiana Supreme Court
400 Royal Street
New Orleans, Louisiana 70130
Clerk of Court: (504) 310-2300
http://www.lasc.org/clerk/default.asp
29th Judicial District Court
15045 River Road
P.O. Box 424
Hahnville, LA 70057
Clerk of Court: (985) 783-6632
http://www.stcharlesparish-la.gov
State of Louisiana Fifth Circuit Court of Appeal
101 Derbigny Street
Gretna, Louisiana 70053
Clerk of Court: (504) 376-1400
http://www.fifthcircuit.org/
