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Business Interruption Insurance and the American Small Business

Small businesses have been struggling tremendously through the COVID-19 pandemic, businesses in services industries with less than 100 employees.

Many businesses do not think federal and state governments are doing enough to help these businesses stay afloat, according to a survey by the Society for Human Resources Management. About 60 percent of business owners surveyed said they have lost revenue because of the coronavirus and related stay-at-home orders.

For 13 percent of small businesses, the revenue loss has been total. More than half laid off some employees; 14 percent laid off all of them. About 4 in 10 small businesses have had to close their physical operations.

Survey Results:

·       54 percent of businesses laid off employees, while 22 percent furloughed employees.

·       40 percent reduced employees’ hours.

·       14 percent lowered employee wages.

·       62 percent reported a general decrease in revenue, while 12 percent reported a general increase.

Alliance

Langdon & Emison has joined three top-tier civil litigation firms for plaintiffs in the representation of businesses whose business interruption insurance claims have been denied. In the group’s first action, the Kansas City-based law firms including Stueve Siegel Hanson LLP filed a class action lawsuit on Friday, April 24, against The Cincinnati Insurance Company, Inc., alleging breach of contract stemming from its refusal to pay property insurance claims related to COVID-19. The other two firms in the alliance are Miller Schirger LLC, and Shaffer Lombardo Shurin.