It is a fundamental reality that any business in New York and across the nation must have a certain level of insurance to account for challenges that arise. People generally think this is related to an accident on the business premises, for a fire, theft or other calamity. However, there are other types of insurance that businesses expect to protect them. If their insurer claims that their coverage does not protect them in certain instances and the insurer declines to pay for loss, it is important for the owners to understand what potential steps are available to get insurers to pay. Examples of why this is important are currently coming to the forefront.
Major retailer faces insurance company refusal to pay
Century 21, a retailer that offers deep discounts on clothes, shoes, perfume, luggage and many other items has decided to file for bankruptcy after its insurance company refused to pay for massive losses due to the current health crisis. With the bankruptcy, its 13 stores located in New York, Florida, Pennsylvania and New Jersey will be shuttered. For businesses that are concerned about how they will continue operations with the current situation and are thinking about whether their insurance will help them, this case may provide a significant amount of information as to what they could face.
The chief executive officer of the company says that insurers paid promptly after the Sept. 11, 2001 terrorist attacks, but no payments have come for the ongoing public crisis sparking the bankruptcy filing. Many other businesses are experiencing the same problem with insurers that say a pandemic is not covered. Still, there were payments made for past outbreaks that led to insurers inserting clauses that were designed to avoid huge payouts. Lawsuits are prevalent disputing insurers’ claims that they are not obligated to pay.
Legal assistance can help with an insurance dispute
This is a complicated legal disagreement over insurance liability that will take time to resolve. For many businesses, the insurance dispute will not reach the financial level of Century 21, but it can still cause them problems as they seek to restart operations or continue operating after an issue. To be fully protected in an insurance coverage dispute, consulting with legal professionals who are experienced in these matters may be helpful in reaching an acceptable resolution or moving forward with a legal filing.