Steps to Take If Your Business Has Been Affected by COVID-19
No business is safe from the economic hardships caused by the coronavirus pandemic. Small mom-and-pop shops and major corporations alike are feeling the impact of lost sales and dropping profits as the spread of COVID-19 continues across the country.
What should you do if your business is reeling from the effects of COVID-19? Are there steps you can take to help improve your chances of weathering the storm?
Three Things Every Business Owner Should Do During the Pandemic
- Revisit your budget: Practically every business model can expect lower profits and sales during the ongoing coronavirus pandemic. Even if you sell products or services that people still want and need, the struggling economy means fewer people can afford to buy it, so your sales will go inherently drop. When you can predict fewer sales, COVID-19 or not, it is time to look at your budget and figure out where spending can go down. Does your office printout flyers that can be changed to emails? Are you filling the breakroom with water bottles when adding a water cooler be less costly? There are always ways to reduce your spending before needing to take drastic steps, like layoffs or closing up shop for good.
- Double-check your insurance coverage: You need to review your business insurance top to bottom and front to back for something called “business interruption insurance.” Most business insurance policies that you can purchase as a business owner will include this coverage somewhere. What the policy includes and covers, though, will vary from case to case. A typical business interruption insurance policy will pay you money to make up for business lost due to an unforeseeable disaster or a government-mandated shutdown. Insurance companies have been fighting the broad definition and application of business interruption insurance, though, and want it to only apply when a business suffered a physical loss, i.e. property damage caused by flooding.
- Call an attorney: Since insurance companies are already fighting viciously to escape paying business owners any form of business interruption insurance payout, the next thing you need to do as a business owner is call a local business law attorney. With a lawyer’s help, you can carefully interpret your insurance policy for any coverage that might apply to this unprecedented situation. When your policy is understood, your attorney can help you start on your claim and prepare what to do if or when the insurance company pushes back.
Is your Austin business struggling due to COVID-19 shutdowns? Call (512) 430-4844 to connect with our coronavirus litigation attorneys from Howry, Breen & Herman, LLP. Since the start of the pandemic, we have been focusing our efforts on business interruption claims and lawsuits for local businesses that we know and love. As proud Austinites, our legal team would be proud to stand up for you when insurance companies would rather walk over you.