NewHavenBIZ

n e w h a v e n b i z . c o m | M a y 2 0 2 1 | n e w h a v e n B I Z 17 For business- es unable to get insurance payments from pandem- ic-related business interruption claims, attorney Stephanie Cummings with Carmody Torrance Sandak & Hennessey in Waterbury noted there are alternative routes to financial assistance. She recommended that businesses first explore the U.S. Small Business Adminis- tration's (SBA) Paycheck Protection Pro- gram, which offers a potentially forgivable loan aimed at helping businesses keep their employees on payroll. e deadline to apply is the end of this month. Eateries can pursue the SBA's 107 Old Windsor Road, Bloomfield, CT 06002 | 860.242.8586 | Fax: 860.242.8587 pdsec.com THINK • PLAN • BUILD Another Successful Project by PDS WALLINGFORD TRUCK STORAGE FACILITY | WALLINGORD, CT The new DPW facility for the Town of Wallingford is a 10,740 square foot pre- engineered metal building. The project included 10 truck bays with overhead doors, 4' high concrete kicker wall, clear span, office space, lockers, restrooms, training room, mechanical room, tool storage, wash bay and a mezzanine. SPOTLIGHT ON: MUNICIPAL TOTAL PROJECT SIZE: 10,740 SF Stephanie Cummings F O C U S : L a w Waterbury, has evaluated several potential claims for the business community. "In virtually every case, it was clear the policies didn't cover pandemic-related losses unless there was some physical loss or damage suffered by the insured," Rubin said. She noted that most policies require physical loss or damage, such as if a hurricane blows off your roof, and then you aren't able to operate your business for a specific period of time. "at's the classic scenario," Rubin said. "With COVID, there is no physical loss because the business isn't damaged. ey were prevented from operating by the governor's orders, but not physical loss." According to Rubin, the Lenny & Joe's decision has been precedent-setting. "We have all learned many lessons," Rubin said. "It has been a real eye-opener for the business community, which has dutifully paid premiums for years. Many were shocked and surprised they didn't have coverage [for a pandemic]." Aer the ongoing COVID-19 ordeal, insurance coverage that does include pandemics will likely be cost-prohibitive for small businesses, Rubin noted. 'All risks' insurance Some state lawmakers around the country have pushed for legislation that would mandate that COVID-19 business interruption claims be covered. However, no state has actually passed a mandate, according to Insurance Journal. Rubin doesn't foresee such a proposal ever gaining traction in Connecticut. Alternatives to business interruption payouts By Michelle Tuccitto Sullo Restaurant Revitalization Fund. e program can provide restaurants with funds equal to their pandemic-related revenue loss up to $10 million per business. Visit restaurants.sba.gov for more information. Business owners may also benefit from Section 1112 payments under the Coronavirus Aid, Relief and Econom- ic Security (CARES) Act, which can help cover loan debt. e Families First Coronavirus Response Act (FFCRA) can provide payroll tax credits. Women entrepreneurs may take advantage of the Women's Business De- velopment Council Equity Match Grant. e program has more than $1 million to help female business owners through grants between $2,500 and $10,000. e state Insurance Department notes that companies can apply for disaster relief loans through the SBA. Visit www. sba.gov/disaster for more information. n "Connecticut for many years has been the insurance capital, and the industry is incredibly strong," Rubin said. Lawsuits over pandemic-related business interruptions are continuing, with organizations and companies asserting that their broader, "all-risks" policies do cover pandemics. Rubin's colleague, attorney Marc J. Kurzman of Carmody Torrance Sandak & Hennessey in Stamford, is representing Wallingford-based manufacturer Amphenol Corp. in a business interruption claim. Amphenol in January sued its "all risks" insurance carrier, Factory Mutual Insurance Co., claiming breach of contract and seeking damages for failure to indemnify the company for its pandemic-related losses. "All risk policies contain different provisions, which would provide coverage where a standard business interruption policy would not," Rubin said. e Amphenol lawsuit claims the company's pandemic-related losses are "believed to exceed $100 million." According to the lawsuit, Amphenol "had the foresight to purchase broad insurance protection against the potentially catastrophic risks posed by events such as a pandemic." It paid a premium of more than $7.2 million for "all risks" coverage that includes losses related to pandemic-related lockdowns and facility closures, the lawsuit states. Factory Mutual, meanwhile, has asserted that Amphenol's claim under the policy is barred because it "did not suffer physical loss or damage" to its property. e case, also assigned to Judge Michael Shea, was still pending as of late-April. Connecticut Children's Medical Center in March 2021 filed a lawsuit against insurer Continental Casualty Co. and its parent company CNA Financial, for its failure to pay its pandemic business interruption claims. It also asserts its "all risks" policy should cover these losses. n

• Cover