Salons and Business Interruption Claims

With a total workforce of more than 582,000 persons, the salon industry is one of the worst hit businesses in the country. Hair salons alone have a market size worth more than $47bn. With ‘shelter-in-place’ and lockdown rules as a result of COVID-19, the revenue base of many of these businesses has drastically reduced.

The concern of many salon owners is whether or not their insurance can cover some of their loss. Most salon owners have a ‘business interruption’ insurance that is expected to get activated the moment their business get shut down.

It is possible that your insurance may cover your loss during this pandemic. An insurance claim attorney at Oshan and Associates can help you go through your policy. Call us today on (206) 335-3880 or (646) 421-4062 to get in touch.

What is ‘Business Interruption’ claim?

A business interruption insurance is a policy that protects your business in the event of an occurrence or disaster that leads to its closure. The business interruption policy covers the ‘damage’ to your salon. In many instances, it may also compensate you for the loss of income as a result of:

• Damage to your property,
• Damage to the property of a customer or supplier (contingent business interruption),
• Government action (or order of civil authority), etc.

What are Insurers saying on business interruption claims caused by COVID-19?

It is not untrue that insurance companies usually do all they can to ensure that your claim is denied. The insurers themselves will try to find loopholes in your policy that will excuse them from any financial obligation to you.

On whether or not insurance companies are readily available to recompense you for your ‘business interruption’, it is a bit dicey. It all depends on the particular words of your policy. For insurance companies, they have raise a number of points why your ‘business interruption’ insurance will not cover the coronavirus pandemic. Some of these include:

• Force majeure. The insurers claim that an ‘external’ unexpected event (COVID-19) has prevented them from honoring their obligation.
• That your business interruption policies only provide coverage when suffer loss of income due to ‘physical loss’ or damage to your salon.
• That the lockdown order of the government is a ‘market condition’ to flatten the curve coronavirus.

Why you should file a claim

A number of arguments are beginning to surface as to why the ‘business interruption’ policy must provide coverage for the loss of income in your salon.

The first is that the virus can indeed cause ‘physical loss’ because it can attach itself to physical surfaces. Also, it is argued that the lockdown order that affected ‘non-essential’ businesses is one that plainly falls under the ‘government action’ clause.

Importantly, some states are also in the lawmaking process of passing laws to ensure insurance companies cover losses incurred as a result of the pandemic.To flatten the curve on your losses during this pandemic, filing a claim in due time may be the best decision made during this plague.

Get in touch with an experienced insurance claim attorney today

Most business interruption policies contain provisions on the timing to file a claim. Even if you have filed a claim and it has been denied, an experienced insurance claim attorney may still be able to negotiate your claim or file a suit to make sure you get the benefit you deserve.

At Oshan and Associates, our skilled attorneys know how to navigate insurance claims. Our attorneys in our offices in New York, Washington, Pennsylvania, Illinois, California, & Puerto Rico are up and ready to get your insurance claim to you.

Get in touch with us in our offices. You can contact us online for a free 'no obligation' consultation here or call us at (206) 335-3880 or (646) 421-4062.

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