COVID19 Business Interruption Claims Are Being Ignored By Insurance Companies
Posted by BEACo on April 29, 2020
Since the onset of the COVID-19 crisis, many businesses have generated lower operating incomes. If the business owners have a policy for Business Interruption Income coverage, it can or should file a claim for lost income. Many insurance companies will then launch an investigation into the loss.
Many insurance companies however are ignoring owners' claims for loss of income under their business interruption policy claims.
What should a company do if its insurance carrier ignores or disagrees with its loss claim?
Larry Grant, President of Business Enterprise Appraisal Co., Inc. recommends that the business owner or legal counsel engage the services of a well-qualified business appraiser to calculate the loss in question. The loss of income report would have to follow a well-established valuation procedure specific to the business that has sustained the loss. The completed report would then be submitted to the insurance company by the business or counsel as proof of the loss of income.
Business Enterprise Appraisal Company has prepared income analysis reports in litigated matters and in lieu of litigation for many years.
Please contact Company President Larry Grant directly if you have questions about the appraisal procedures we follow in determining the loss of income sustained by your business.
Further Note: The value of businesses that are currently "hanging on" have declined substantially from their pre-pandemic highs. Most real properties have also dropped in value. For these reasons, we have been engaged to value ownership interests in these holdings for estate planning and gifting purposes. Many attorneys and accountants with whom we work have suggested that now is an opportune time to convey ownership interests in these assets. Please contact the office if we may assist you in these valautions.