Understanding Denied Baltimore Business Interruption Claims

Insurance policies are unique legal documents drafted in language that is often unfamiliar and complex to policyholders. While they provide broad grants of coverage for losses caused by specified risks or perils, the majority of any given policy is dedicated to exclusions and limitations designed to restrict that coverage. As Eric T. Kirk, Baltimore’s Denied Insurance Claim Attorney will tell you, insurance companies often rely on these provisions to deny claims, even when policyholders have suffered significant financial losses.

When filing a business interruption claim, a thorough policy review is the crucial first step. Each insurance policy is unique, and understanding its specific terms is essential in determining whether a claim is valid. A business interruption claim attorney plays a key role in analyzing these terms and advocating for policyholders who have had their claims denied.

Establishing Coverage for Baltimore Business Interruption Claims

The general framework for establishing coverage follows three key principles:

1. Specified loss or damage
2. Occasioned by a covered cause of loss, risk, or peril
3. Not excluded or limited by policy provisions

Even though each policy differs, some insurers use standardized templates developed by organizations such as Insurance Services Office Inc. (ISO). ISO provides statistical data, rating information, and standard policy forms to insurance companies. One widely used template has been the CP 00 30 Business Income (and Extra Expense) Form, which outlines the scope of business interruption coverage.

This standard business income form typically states:

“We will pay for the actual loss of Business Income you sustain due to the necessary suspension of your operations during the period of restoration. The suspension must be caused by direct physical loss of or damage to property at premises described in the Declarations and for which a Business Income Limit Of Insurance is shown in the Declarations. The loss or damage must be caused by or result from a Covered Cause of Loss.”

Additionally, the policy will define covered causes of loss and list exclusions and limitations that may impact a claim. The challenge for policyholders arises when insurers interpret these terms in ways that minimize or eliminate coverage.

Common Reasons Insurance Companies Deny Business Interruption Claims

Insurance companies often deny business interruption claims based on various arguments, including:

• No Direct Physical Loss or Damage: Many policies require a direct physical loss or damage to trigger coverage. Insurers frequently argue that mere financial loss or disruption of operations does not constitute direct physical damage.
• Exclusions for Certain Perils: Policies contain exclusions for specific risks. If an insurer contends that a loss falls under an excluded category, they may deny coverage.
• Policy Limitations: Certain policies may contain clauses that limit coverage based on time periods, affected locations, or required documentation.
• Failure to Meet Policy Conditions: Insurers may argue that a business failed to provide proper notice of the loss, did not mitigate damages, or lacked sufficient proof of lost income.

Fighting a Denied Baltimore Business Interruption Claim

If your business interruption claim has been denied, you are not without recourse. Policyholders have the right to challenge a denial and, when necessary, pursue legal action for breach of contract. In Maryland, insurance companies retain highly skilled business interruption claim attorneys to defend their interests. To level the playing field, you need an experienced advocate who understands the complexities of insurance law and will fight for your rights. Eric T. Kirk has spent decades battling insurance companies that refuse to honor valid claims. Having litigated thousands of insurance disputes, he understands the tactics insurers use to deny claims and how to counteract them effectively. If your business has suffered losses due to an event beyond your control and your claim has been denied, Attorney Kirk is prepared to assess your policy, analyze your losses, and determine the best legal course of action.

Winning a Denied Baltimore Business Interruption Claim: What You Can Do Next

If your insurance company has denied your business interruption claim, consider taking the following steps:

1. Review Your Policy Carefully: Understand the language of your policy, including coverage provisions, exclusions, and limitations.
2. Gather Documentation: Collect records of income statements, expenses, communications with your insurer, and any notices related to your business interruption.
3. Seek Legal Counsel: Consult with an experienced business interruption claim attorney to evaluate your case and determine the best course of action.

Insurance Disputes

Contact Eric T. Kirk Today

Attorney Eric T. Kirk has dedicated his career to representing policyholders in disputes against insurance companies. If you believe your business interruption claim has been wrongfully denied, he is available to provide a thorough evaluation and discuss potential legal strategies to recover the compensation you are entitled to. For a consultation, fill out the contact form on the website or call directly at 410-591-2835. Don’t let your insurer dictate your terms.