Tag Archives: Small Businesses

Business Interruption and Loss of Use Insurance Claims Resulting from COVID-19

In Michigan, as in most states, the state authority has significantly limited access to public places, stores, restaurants, movie theaters, offices, and other businesses through the issuance of executive orders prohibiting such access. For businesses whose viability depends on the public’s ability to access that business’ physical location, the issuance of such orders has resulted in a loss of use of the property and a severe interruption in business. For some, their insurance policies may appear to insure against loss of use of the insured property when a civil authority prohibits the insured from using the insured property, such as through issuance of an executive prohibiting such access, or there is damage to the property resulting in its loss of use. While it may seem as though the business climate created by the Coronavirus (COVID-19) is unique to our generation, this is not the first time a Governor’s executive order has impacted businesses in Michigan and there are several cases from the Michigan Court of Appeals which can provide guidance.

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“Too Good to be True” Changes to the SBA Economic Injury Disaster Loan Advance Grant

The full economic impact of COVID-19 and its related “stay at home” orders cannot be measured right now. Anecdotal evidence suggests that widespread delinquencies and defaults have begun. Condominium and homeowner associations are not immune and can rightly expect negative consequences. As homeowners struggle with job disruptions and loss of income, the likelihood of delay or default in payment of assessments becomes a stark reality. And the association’s ability to collect past due assessments is substantially affected by unpaid property taxes, by delinquent mortgages having priority over assessments and by homeowner bankruptcies. This environment poses unique challenges for associations to continue services uninterrupted, especially when vendors and employees expect timely payment. Read more