“Claims from the business closure insurance are not a sticky stick”

–

–
Many industries were hit with full force by the second lockdown to combat the corona pandemic in Germany. Extensions until December 20 are a done deal, in some cases there is talk of closings until next spring. Gastronomy companies are not allowed to entertain guests, only professionally unavoidable overnight stays are allowed in hotels, sports and leisure facilities remain closed, as well as cultural institutions, and the event industry also faces more difficult weeks and months. This leads to enormous economic damage, which even state aid cannot fully offset, especially not after the tough phase since March, which has already caused significant sales losses for many companies and possibly used up existing reserves.

“In principle, many companies also have insurance cover for such cases. After all, many managers and entrepreneurs have taken out so-called business closure insurance to protect themselves against the economic damage of a business closure, “says Tim Banerjee, lawyer and partner at the commercial law firm Banerjee & Kollegen from Mönchengladbach (www.banerjee-kollegen.de). Among other things, he advises companies on all aspects of insurance law and disputes with insurance companies.

Tim Banerjee specifies the importance of the business closure insurance again: “The insurance replaces the lost operating profit and the expense of ongoing costs, for example personnel costs and commissions, expenses for operating and auxiliary materials for business maintenance, rents, leases and much more. The insurance not only maintains the company’s liquidity. ”It also ensures that any interest obligations from company loans can be met. Because not being able to service a loan or having to continue financing with a new loan is not something that entrepreneurs are necessarily looking for, the lawyer knows from practice. In addition, the following applies: The insurance bridges the time until full operating and sales performance is restored without entrepreneurs having to attack their own substance (equity).

The problem is that many insurance companies are refusing to pay related to Covid-19. This is particularly evident in the hotel and catering industry. With reference to the hotel industry, for example, the insurers claim that the insured event did not occur because only tourist, but not business, overnight stays are prohibited and one cannot therefore speak of a business closure in the classic sense. Or insurance companies want their usually only small payments against a severance payment declaration, explains Banerjee. “This means that the client receives a one-off payment that takes into account all past and future damage. This means that even for a possible third or even fourth wave, no payments would be made by the insurance company in the event of a business closure. Therefore, entrepreneurs should not accept such offers! “

From the attorney’s point of view, there is also no legally tenable reason for insurance companies to refuse insurance benefits, since the legislature has now included COVID-19 in the catalog according to the law for the prevention and control of infectious diseases in humans (Infection Protection Act – IfSG) under Section 6 ” Notifiable Diseases ”. Insurance companies can no longer claim that COVID-19 is not listed in the Infection Protection Act and that business closings due to this disease are subject to regulation, as they did in the spring.

For the lawyer, there is therefore only a legal solution to these disputes. “The claims from the business closure insurance are not a sticky stick. The insurance payments may therefore be necessary to avert insolvency, as well as the use of state aid instruments such as short-time work benefits, bridging aid and quick loans. ”In this context, he also points out that there are already positive judgments for affected companies in disputes with insurance companies. Entrepreneurs and managers should therefore insist on their rights and, in case of doubt, clarify and use the full range of possible legal remedies up to and including insurance claims.

– .