The COVID-19 pandemic also known as the Corona Virus pandemic is rapidly developing and the situation is changing from day to day including the business and legal landscape. Barry Edson , founder of Edson Legal has almost 40 years of experience providing clients with legal representation respecting insurance claims and disputes including in the area of commercial insurance.
Corona Virus Insurance Claim and Coverage : Legal Considerations
Many serious issues have arisen surrounding COVID-19 in regards to the daily disruptions to our personal lives and business activity. Social distancing, changing consumer behaviour and supply chain disruption is affecting almost all Canadian businesses . Governments all over , including in Ontario are issuing mandatory orders requiring non-essential businesses to close including but not limited to commercial landlords, commercial tenants, mortgage holders, restaurants , cafes, bars, barber shops, clothing and other retail stores and beauty salons .
With rapidly shrinking revenues and devastating cash flow squeezes Ontario businesses are looking for avenues for financial relief. One potential avenue for financial relief is insurance. At Edson Legal we have almost forty years of experience advising individuals and businesses respecting their insurance coverage including commercial insurance coverage.
Please contact Barry Edson for a free no obligation consultation respecting your insurance policy and COVID-19.
We have entered uncharted and uncertain times. We have never faced a near total shutdown of the national economy as the result of a pandemic. Consequently there is not a lot of judicial guidance respecting the rights of policy holders and the obligations of insurers to their policy holders who have suffered devastating losses as a result of COVID-19.
Commercial Insurance Policies
Coverage under all perils insurance provisions and business interruption provisions under most policies is usually only triggered if the loss in income is due to physical loss or damage to the assets of the insured, or to the assets of a key supplier to the insured. The definition of “physical loss or damage” is not necessarily clear and it has not been established with any degree of certainty that “physical damage” to the property is required or what constitutes physical damage.
Reviewing the specific language of each policy will be key in providing an opinion as to whether coverage applies or may apply. Even in a case of doubt it is always prudent to make a claim under the policy to preserve your rights. Commercial insurance companies are going to be inundated with claims and they will be looking at any opportunity to avoid coverage. Making a timely claim is therefore of the utmost importance to preserve potential recovery .
Please contact Barry Edson for a free no obligation consultation respecting your insurance policy and COVID-19 .
Government Mandated Closure of Businesses
Commercial insurance policies generally have a section responding to losses resulting from interruption caused by Civil Authorities. These provisions may be restricted to situations where there has been physical loss or damage . The definition of this coverage can vary from insurer to insurer. It is possible that if the operation of a business is restricted due to a governmental order prohibiting access, coverage may be available to indemnify the insured from losses stemming from the denial of access. Even if your business is not affected by a mandatory closure order , there may be a public policy argument available that coverage should apply to a business that closes to guard against potential harm to it’s employees and to comply with public health recommendations that are not yet mandatory. Coverage may also be available under circumstances where employees refuse to come to work because of concerns for their won safety and seek to exercise their rights under the Occupational Health and Safety Act , rendering it impossible for the employer to carry on business. Some businesses are only subject to a partial closure. Coverage that applies to a full closure may also apply to a partial closure.
Please feel free to contact Barry Edson for a free no obligation consultation respecting your insurance policy and COVID-19.
Claims Against Insurance Brokers
It is also possible that a claim may lie against your insurance broker in negligence for failing to provide you with proper coverage advice respecting losses caused by events such as a pandemic. Whether such a claim may arise will depend upon the circumstances of each case including the nature of your business and when you placed your insurance coverage.
Please feel free to contact Barry Edson for a free no obligation consultation respecting the feasibility of a claim against your insurance broker in negligence for failing to provide you with proper coverage advice.
What should you do if you think you may have sustained a recoverable loss as a result of COVID-19
Because we are in unchartered waters there is no clear cut answer as to whether your insurance policy will indemnify you for your COVID-19 financial losses. At Edson Legal we are prepared to provide you with a free no obligation consultation respecting your insurance policy and COVID-19.
Please feel free to contact Barry Edson for a free no obligation consultation respecting your insurance policy and COVID-19.
You should also do the following in the event of financial losses caused by COVID-19
Start to document the financial impact of COVID-19 on your business by tracking all incremental and abnormal costs including but not limited to additional expenses incurred in disinfecting the premises, additional labour costs directly caused by COVID-19 and additional management costs . If we are retained we can make a referral to competent and expert litigation accountants who can assist you in identifying, tracking and quantifying your financial losses.
COVID-19 Lawyer Serving Toronto, Ontario in Canada
Please feel free to contact Barry Edson today for a free no obligation consultation respecting your insurance policy and COVID-19. Let Barry Edson’s almost forty years of experience in advising clients respecting insurance policy disputes be put to work for you . Edson Legal offers attractive contingency fee arrangements to assist financially strapped businesses seeking to be compensated for their losses under their commercial insurance policies for financial losses caused by the COVID-19 pandemic.