Small Businesses in Alaska Affected by COVID-19 May Not Get Relief from Filing a Business Interruption Insurance Claim

Apr 9, 2020 10:45 PM ET

As a small business owner in Alaska, you likely took the initiative to purchase insurance coverage that would not only protect your business from lawsuits, but also from losses. Like all other business owners, you probably purchased business interruption insurance which can be used to protect you from those “what if” moments. What if a storm were to hit your area hard and cause you to close down your establishment? What if a fire broke out in your restaurant which required you to shut it down temporarily?

These “what if” moments are exactly what insurance coverage is supposed to protect you from. While companies rarely have to file a business interruption claim as these “what if” moments don’t arise often, business owners at least have peace of mind knowing that if anything were to come along and interrupt their business operations, they would be able to get some sort of relief from their insurer.

Unfortunately, after COVID-19 began to spread across the globe resulting in the government forcing many small businesses to close, several business owners learned that their insurers weren’t going to give them the relief they needed.


Insurers Allege Pandemics are Excluded from Business Insurance Interruption Coverage

After shutting their doors and watching their previous earnings become depleted, small business owners have begun to turn to their insurers for help. Many filed business interruption insurance claims hoping to recover some money to cover the losses they have experienced. Rather than have their claim processed and approved, insurers are responding to these claims by sending out denial notices.

CNN recently shared that these denial notices are being sent out as insurers say business interruption insurance coverage does not cover pandemics such as COVID-19. David Sampson, the President and CEO of the American Property Casualty Insurance Association stated that “If policymakers force insurers to pay for losses that are not covered under existing insurance policies, the stability of the sector could be impacted and that could affect the ability of consumers to address everyday risks that are covered by the property casualty industry.”

Although the insurance industry is taking a hard hit from the COVID-19 virus, it is still liable for providing Alaska business owners with the benefits they are entitled to receive.


What can small business owners in Alaska do to ensure their claim gets paid?

Hire an Alaska insurance claims attorney. The lawyers can connect you with will not only help you file your business interruption claim correctly, but they can also appeal a denial should your insurer choose to not pay your claim. To speak with an insurance claims lawyer in Alaska now, contact

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