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After COVID-19 was declared a global pandemic, government entities sought to slow the spread of the virus by requiring non-essential businesses to close or substantially reduce their business operations. This unexpected business closure and/or operation reduction caused significant financial hardship to businesses across a broad range of industries.
If you filed a business interruption insurance claim with Intact Insurance Company seeking compensation for lost income due to COVID-19 restrictions that affected your business and your claim was denied, a business interruption insurance lawyer could help you fight for the compensation you may be entitled to receive.
What is Business Interruption Insurance?
Business interruption insurance provides coverage for businesses when they are unable to provide services at the same capacity due to a major event such as a natural disaster, fire or other type of disaster.
This type of insurance coverage replaces a company’s lost income during the disaster. Depending on the specific policy terms, it may also cover operating expenses, the cost of moving to a temporary location if necessary, payroll, loan payments and taxes.
During the COVID-19 pandemic, many governmental entities imposed significant restrictions on “non-essential” business operations, causing numerous companies to suffer financial losses because they were prohibited from operating at the same capacity.
In response, many businesses have sought to file a business interruption insurance claim to replace the income they’re losing. Unfortunately, they are often finding out that their insurance companies are denying claims for business interruption related to the COVID-19 pandemic.
Does Intact Insurance Company Deny COVID-19 Business Interruption Claims?
Intact Insurance Company is currently facing legal action over its alleged failure to pay for business interruption insurance claims stemming from COVID-19 closures and other restrictions. Policyholders claim that the language in their insurance contracts indicate that business interruption insurance coverage kicks in when access to the premises is prohibited due to government restrictions. In some cases, the policy language indicates that business interruption insurance will provide coverage for lost income “as a result of a notifiable contagious or infectious human disease,” and policyholders argue that COVID-19 falls into that category.
Officials from the insurance company have reportedly justified their denial of COVID-19 business interruption insurance claims because most policies require direct physical loss in order to trigger the business interruption coverage.
Many frustrated business owners have unsuccessfully filed Intact Insurance Company claims for their business interruption losses and continue to face financial hardship because the insurer reportedly continues to deny coverage for their lost income. Some have even begun taking legal action against Intact Insurance Company on behalf of their businesses and others whose business interruption insurance claims have been denied.
Intact Insurance Company Faces Multiple Class Action Lawsuits
After pursuing their business interruption insurance claims with Intact Insurance Company and having them routinely denied, many policyholders are taking legal action against the insurer.
In the spring, 10 of Canada’s largest insurance providers, including Intact Insurance Company, were hit with a nationwide class action lawsuit over allegations they refused to pay business owners for financial losses stemming from COVID-19 restrictions.
Intact Insurance Company has also been the sole target of several business interruption insurance class action lawsuits. One was filed by a Montreal wholesale construction material business whose business interruption claim was denied by Intact.
Another business interruption insurance class action lawsuit was filed by a Montreal catering company that was forced to close and substantially reduce its business capacity due to government orders intended to curb the spread of COVID-19. The company’s claim was reportedly denied by Intact Insurance Company.
Intact Insurance Company was also hit with a class action lawsuit filed by the owner of a dental office in British Columbia who accuses the insurer of improperly denying business interruption insurance coverage for business losses during the COVID-19 pandemic.
File a Business Interruption Insurance Lawsuit
If Intact Insurance Company denied your business interruption insurance claim, it may be a good idea to meet with a lawyer to discuss your legal options. Many insurance denial lawyers offer a free consultation and can help you determine what steps to take to get the compensation you’re entitled to receive.
British Columbia business owners who were forced to close temporarily due to COVID-19 restrictions may also be eligible to join a free COVID-19 business interruption insurance class action lawsuit investigation. Fill out the form on this page for a free case evaluation.
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