What You Need to Know About Business Interruption Insurance and COVID-19
NEW ORLEANS, May 5, 2020 (Newswire.com) - Through virtual consultations and meetings during these uncertain times, the New Orleans personal injury law firm Allan Berger & Associates has been able to provide legal guidance to individuals and businesses that have been devastated financially by the COVID-19 global pandemic.
Understanding the Financial Impact of Louisiana Tourism
With the majority of the 125 festivals scheduled in New Orleans for the 2020 Festival Season canceled due to COVID-19, the City of New Orleans faces an uncertain economic future. Tourism plays a vital role in shaping the overall economy of Louisiana. In 2018, 51.3 million visitors spent $18.8 billion in Louisiana and were responsible for nearly one-quarter of a million jobs. Tax revenue generated from this influx of tourists was responsible for $1.9 billion in state and local taxes – estimated to save the average Louisiana resident nearly $1,100 annually in taxes. A recent piece published in the Times Picayune indicated many businesses may be closed until at least June – and New Orleans’ tourism industry may take until late summer or early fall to begin to recover. Unfortunately, this spells trouble for the numerous restaurants, hotels, and other businesses dependent upon tourists to keep their doors open. What happens to those businesses that depend on tourism to generate revenue?
Business Interruption Service and Virus Coverage
Business interruption insurance is a common insurance policy for many businesses in Louisiana. Hurricane Katrina, one of the costliest in terms of insurance claims, forced businesses to evaluate insurance coverage in the event another weather-related event interrupted normal operations. However, business interruption insurance may not cover COVID-19 claims – meaning thousands of business owners who file claims with their insurer may find their claims denied.
Though the stay at home order by Governor John Bel Edwards (Proclamation 33 JBE 2020) resulted in thousands of businesses having to cease operations, insurance companies maintain that business interruption coverage may not include coverage for the forced shutdown. As a result, businesses may struggle to recover losses they have suffered under their insurance policies. Reading and understanding the fine print contained in business interruption insurance policies is of the utmost importance, and Allan Berger & Associates can help business owners during this critical time.
If you own a business that has suffered economic loss and your insurance company has denied your business interruption claim, contact Allan Berger & Associates by telephone at 504-526-2222 or by email at info@bergerlawnola.com for a free consultation and review of your business interruption insurance policy.
Allan Berger & Associates has been proud to call New Orleans home and help the community when in need. This unprecedented time in Louisiana is no different. Put over 40 years of local experience on your side and work with a law firm that has extensive experience representing business owners against insurance companies.
Source: Allan Berger & Associates, PLC