Business Interruption Claims for Gyms and Fitness Centers
With thousands of gyms closed or operating at reduced capacity due to North Carolina’s coronavirus-related stay-at-home orders, an uncertain financial future remains ahead for many gym and fitness center owners. If your gym business is one of thousands across the state that have suffered significant financial losses due to North Carolina’s COVID-19-related restrictions this year, you may be wondering about a business interruption claim for your gym or fitness center.
As gyms and fitness centers adjust to this “new normal” during the COVID-19 pandemic, gym owners frequently ask us, “Can I file a business interruption claim for my gym business?”
The coronavirus-related shutdowns and capacity restrictions have left many gym owners across North Carolina struggling to stay afloat and wondering if a business interruption claim can help their business get back on its feet.
At Riddle & Brantley, our experienced business interruption attorneys have spent decades fighting for North Carolina business owners hurt by circumstances beyond their control.
In this article, we explain what business interruption insurance is and how our attorneys can help evaluate whether you qualify for a business interruption lawsuit to recover some of the revenue your gym has lost due to restrictions associated with the pandemic.
What is business interruption insurance?
Both large and small businesses can benefit from obtaining business interruption insurance as part of their business owner’s insurance policy. Business interruption insurance, which is typically sold as financial protection for businessowners from unexpected disasters, is a type of insurance policy that helps a business protect its profits in the event that certain types of catastrophes occur.
For example, if a natural disaster (often called a “peril”) like a hurricane, fire, earthquake or flood causes a business to shut down or lose money due to recovery efforts, a business interruption insurance policy could compensate the business for lost revenue and extra expenses that arise during that period.
If your gym or fitness business has suffered losses due to the coronavirus pandemic, your business interruption policy may entitle you to seek compensation for revenue losses and other expenses.
Business interruption insurance typically covers losses such as:
- Lost profits due to business closure
- Losses from operating expenses or other fixed costs
- Employee wages and benefits
- Additional expenses required to maintain business operations during or immediately following a crisis
- Moving expenses, if the business had to temporarily or permanently relocate following a crisis
- Costs associated with deep cleaning your business to maintain sanitation standards
If, like many of our clients, you are wondering “does my business owner’s insurance cover my gym’s revenue losses due to COVID-19?”, the answer is… it’s complicated.
For a FREE consultation concerning a potential business interruption claim for gyms or fitness centers, please call 1-800-525-7111 today.
There is no obligation and you won’t pay any attorney fees unless we recover compensation for your gym with a business interruption claim.
Even if you’ve been denied for a business interruption claim for your gym or fitness business, you may still be entitled to compensation and we may be able to help.
Call 1-800-525-7111 today and let’s review your gym business interruption policy to see if you may have a valid claim for compensation.
Business Interruption Policy Language
Whether your business interruption insurance covers losses associated with government-mandated coronavirus gym closures depends on the language in your policy. If your policy covers business closures due to an order by a “civil authority,” such as state government, it may cover COVID-related revenue losses due to Governor Cooper’s orders.
In contrast, other business interruption policies may contain a “physical loss” requirement, which could make it more difficult for you to claim your COVID-19-related losses. These policies typically require that the business’s physical building experience some type of loss to account for lost revenue.
However, there are many COVID-19-related business interruption lawsuits currently pending in North Carolina state and federal courts that focus on whether “physical loss” includes pandemic-related business operation restrictions. While the outcome of these cases is unclear at the moment, a Durham County Superior Court judge did recently rule that the phrase “direct physical loss” as provided for in the policy did not require that the physical property be physically destroyed. Rather, the judge said that North Carolina’s stay-at-home orders and suspension of business operations for certain establishments caused a direct loss that was not excluded by the owners’ business interruption coverage.
This interpretation is good news for plaintiffs looking to bring business interruption claims against their carriers for coronavirus-related business losses, and Riddle and Brantley’s business interruption lawyers are actively following these cases for how they may impact our client’s claims in the future.
“What happens if my business interruption claim was denied?”
Many North Carolina gym owners who have filed business interruption claims during the COVID-19 pandemic have found that their claims are denied. If your business interruption claim for your gym has been denied, do not be discouraged, and do not simply take “no” for an answer.
Instead, seek the advice of an experienced North Carolina business interruption attorney to help evaluate your claim and advise you regarding the best legal avenues to pursue your claim for the compensation your business deserves.
For a FREE consultation with an experienced business interruption lawyer handling claims for gyms and fitness businesses in North Carolina, please call 1-800-525-7111.
There is no upfront cost and you won’t pay any attorney fees unless we win your case and you receive compensation for your gym’s loss of revenue or business expenses due to the COVID-19 pandemic and statewide restrictions.
Please call 1-800-525-7111 today and let’s review your gym’s business interruption claim.
COVID-19 Business Interruption Claims
Although many insurance companies have already released statements that coronavirus-related claims are not covered under their business interruption policies, this is not necessarily true.
Business interruption policies often cover several areas on your policy that are triggered by the occurrence of different events or governmental actions. Therefore, coverage is determined on a case-by-case basis. It is important to speak with an experienced business interruption attorney even if your claim has been initially denied, because the specific terms of your business owner’s policy may still entitle you to compensation for lost revenue and unforeseen expenses arising from North Carolina’s coronavirus-related capacity restrictions and shelter-in-place orders.
Additionally, even if you have business interruption insurance as part of your business owner’s policy, make sure you have a business interruption attorney review your policy for any limitations or exclusions to coverage that can impact the amount of your claim.
A North Carolina business interruption attorney can also advise you on whether your policy requires you to take certain actions to mitigate your losses. If your business interruption claim is denied, one of Riddle & Brantley’s business interruption lawyers can negotiate with the insurer on your behalf to help you get the coverage your business needs and deserves.
Does Your Gym or Fitness Center Have a Business Interruption Claim Due to COVID-19?
If you’re a gym owner in North Carolina who has suffered financial losses due to the closure of gyms during the coronavirus pandemic, you may qualify for a business interruption claim or lawsuit to recoup some of the revenue your business has lost this year.
Riddle & Brantley’s coronavirus business interruption lawyers are currently reviewing claims from gym owners to compel insurers to cover the massive business losses that gym owners have faced due to North Carolina restrictions during the pandemic.
For a FREE consultation with an experienced attorney handling business interruption claims for gyms and fitness businesses, please call 1-800-525-7111.
“Riddle & Brantley found me all the available money from the insurance companies.”
–David Howard, Riddle & Brantley client
There is no obligation and we don’t get paid unless you do. If you don’t get compensation from your business interruption policy, you won’t pay any attorney fees.
Please call 1-800-525-7111 and let’s review your fitness business or gym business interruption claim.
Even if your gym’s business interruption claim has been denied, we may still be able to help. Please call 1-800-525-7111 today and let’s talk.