Could Colorado’s Stay at Home Order be Used to Help Businesses Get Their Business Interruption Claims Approved?

Apr 13, 2020 9:40 PM ET

Business owners all across the country are seeking financial relief from their insurance policies but few, if any, are getting it. While most business owners are filing business interruption claims as they assume this coverage will pay out for the losses they have incurred thus far, many are receiving denials notices rather than checks. Why?

Insurance companies are defending their denials by saying that the losses businesses in Colorado are experiencing are not being caused by physical damage to the premises. Typically, in order for an insurer to approve a business interruption claim, a claimant needs to prove that they had to “vacate their premises due to disaster-related damage that is covered under [their] property insurance policy, such as a fire.” Pandemics, which may be classified as a disaster, aren’t covered under these types of policies, that is, unless an owner opted to add an endorsement to their policy that would cover a disease outbreak.

Although business owners are being told that their policy will not cover the losses they suffered as a result of the COVID-19 crisis, the Governor of Colorado, Jared Polis, recently issued Executive Order D 2020 024, which amends Executive Order 2020 017, that requires all Coloradans to stay at home. The order is not only expected to help flatten the curve on coronavirus but it also aims to “protect against overwhelming [the state’s] health care resources.” In the stay at home order, Governor Polis went on to say that “COVID-19 also physically contributes to property loss, contamination, and damage due to its propensity to attach to surfaces for prolonged periods of time.”


Could a business owner in Colorado use Executive Order D 2020 024 as their defense if their insurer denies their business interruption claim?

Maybe, maybe not. The reality is, insurers today are more likely to deny a business interruption claim than they are to approve one simply because they don’t want their surplus to be depleted. As of right now, monthly business losses are estimated to be in the billions and the insurance industry worries that if it begins to approve claims, its $800 billion surplus will be used up. In order to protect its surplus and its profits, the insurance industry is finding ways to avoid having to pay out on the business interruption claims that are being filed.


What can a business owner in Colorado do to increase their chances of getting their business interruption claim approved?

You can hire a Colorado insurance claims lawyer to assist with the claims process. can connect you now with the best insurance claims attorneys in Colorado who will defend your rights as a policyholder and fight for the financial relief you are entitled to.

See Campaign:
Contact Information:
Free Case Evaluation

Call Us: 800-672-3103

Content Marketing, Extended Distribution, English