Commercial insurance claims related to losses during COVID-19 have been denied for a number of reasons. For example, some policies include viral exclusions that allow insurance companies to deny coverage in virus- or bacteria-related matters. Other policies may have ambiguous language concerning viruses that insurance adjusters are using to support their decisions.
The reality is that insurance companies may automatically deny a business interruption claim during the coronavirus pandemic regardless of the absence or clarity of a viral exclusion policy—all with the assumption that business owners won’t have the knowledge or resources to fight the rejection of their claims.