Key Steps to Improve Insurance Recovery for Pandemic Related Losses

The COVID-19 pandemic has created significant uncertainty for businesses seeking relief for their financial losses. The insurance industry rapidly responded that there is no coverage for business interruption or income losses related to the pandemic; however, policyholders are challenging this position by filing lawsuits across the country, and state governments are proposing legislation that would require insurance companies to cover these losses. It is important to take the following steps now to preserve your right to file a claim and capture relevant information necessary to present a claim:


Insurance policies contain notice obligations that require policyholders to notify their insurance company when they have experienced a loss in connection with their policy. You should promptly review your policy for any conditions requiring notice, and carefully adhere to the notice obligations under the policy. Failure to do so may result in denial of your claim.


You should capture the following information for a future business interruption claim:

  • Develop a timeline of government and/or executive orders that impact your business;
  • Track and document:
    • Business metrics that demonstrate the loss of revenue;
    • Payroll expenses;
    • Continuing operating expenses (e.g., rent, utilities, taxes); and
    • Extra expenses incurred as a result of the pandemic (i.e., expenses necessary to avoid or minimize damages related to the pandemic)


Insurance policies generally have a deadline for submitting a proof of loss that substantiate the value of your claim. You should review your policy to identify any the deadline for your submission of a proof of loss. Failure to present a timely proof of loss may impact your insurance recovery.


Your claim may be denied. If so, policies often require that policyholders file suit against their insurance company within a limited time. Check your policy to ensure that you know the timeframe for filing a lawsuit against your insurance company to challenge its denial of your claim.

This outline is a general overview of the process, and is not intended to be all-inclusive. Each business may have unique data relevant to its losses that should be tracked. If you have any questions about the claim process, including how to track your business losses, our Insurance Recovery Counseling Team is available to assist.