In this unprecedented year, businesses have been hit with multiple stay-at-home orders and harsh restrictions on the ways that they are able to operate their business.
Many protocols have been put into place by order of mayors and governors that have dampened business for those that operate in-person.
We may even see restrictions coming from the federal level as the current administration changes hands in January 2021.
With all of these restrictions in place, businesses have been hit hard financially, through no fault of the business owner.
Californians recently had their stay-at-home order reinstated which has dealt another blow to any businesses hoping to see an end-of-year uptick during the holiday season.
If your business has been affected due to Covid-19 mandatory closures and restrictions, VanDerGinst Law may be able to help. Click here to learn more.
California’s Stay-At-Home Order
California’s first stay-at-home order was on March 19, 2020.
This was the first hit to businesses as people were instructed to only go out for essential jobs and to shop for essential items.
Things began to gradually open back up throughout the year, and many businesses were able to operate at a limited capacity as a slow reopening took place.
During this time, many small businesses were able to take advantage of Economic Injury Disaster Loans that were part of the CARES Act. They were also able to take advantage of the Paycheck Protection Program to help maintain payroll for employees.
The problem was that these funds had a limit, and not every business was able to benefit from these relief efforts.
California was hit with an additional limited stay-at-home order on November 21st followed by a full regional stay-at-home order on December 6th.
The order is in effect for a minimum of 3 weeks, dashing any hopes for businesses to recover during the holiday season.
Stay-At-Home Order’s Effect on Business
As a business owner, you have likely experienced the hardships that these types of orders have on your bottom line during this pandemic.
All non-essential businesses are required to stop in-person activities within regions that are marked with the stay-at-home order.
Restaurants are reduced to take out and delivery only.
Indoor gyms must close their doors and stop allowing members in to workout.
Retail stores have to limit their capacity to 25%-35%, depending on the type of store they are.
Non-essential hotel stays are now, for the most part, banned, dealing a blow to hotels and other short-term lodging facilities.
In essence, if your doors are still allowed to be open during the regional shutdown, your ability to make income has still been severely limited.
The worst part is that financial help from the federal level isn’t always available.
Missing Out on Economic Injury Disaster Loans
If you missed out on relief from the Economic Injury Disaster Loans or the Paycheck Protection Program, there may still be some options available to you in order to find economic relief for your business.
Many Business Owner’s Policies (BOPs) come with a clause for Business Interruption.
This clause goes into effect during a major disaster to help your business cover expenses such as loan payments, payroll, taxes, and any other operating expenses while your business is unable to generate money from unforeseen events.
As no one could predict the pandemic, many of these BOPs don’t include any verbiage about covering your business during forced closures by order of the government.
Your business insurance company may not agree to pay out on your business interruption claim because forced closure due to the order of the California governor is not specifically worded within the agreement.
This does not give the insurance company the right to shirk their responsibilities.
Help may be available to push your insurance company to pay you the money you deserve.
Call VanDerGinst Law for Help
VanDerGinst Law is partnering with Andrew D. Schneider, Esq. to provide our clients with analyses of their business interruption economic loss claims to help alleviate losses due to Covid-19 related closures.
If you’ve been rejected for a claim or aren’t sure where to start with filing your business interruption claim for losses due to Covid-19, VanDerGinst Law can help!
We will evaluate your situation, free of charge, to help you determine if you have a viable claim.
Filing a claim can be complicated and intimidating, and insurance companies aren’t in the business of making it easy on you.
Let VanDerGinst Law negotiate on your behalf to get you every cent to which you are entitled!
If we don’t get you compensation, you don’t owe us a dime.
Don’t let the California stay-at-home orders mean the end of the business that you’ve worked so hard for.
We would be honored to help.
The information contained on this website is presented by VanDerGinst Law P.C. It is not intended nor should it be construed as professional legal advice. The information is general in nature about the Firm, the scope of services we offer, and our community outreach, it is not legal advice. Please contact us by phone, email, mail, or via this website for inquiries. Contacting us does not create an attorney-client relationship. Please contact a personal injury attorney for a consultation regarding your situation. This website is not intended to solicit clients outside the State of Iowa and/or the State of Illinois.