Editorial by Manos Angelakis
Let the Buyer Beware!
The largest con job perpetrated on American businesses seems to be by the American insurance industry. During the good times they make billions of dollars selling all kinds of business insurance, fostering the belief that the industry will come to a company’s financial assistance in time of need.
Well… the COVID-19 pandemic is here!
Business interruption insurance… there have been all kinds of policies from companies that prior to the pandemic were crowding the airwaves with commercials and clogging the mail with unsolicited printed material; these companies are now telling policy holders that the policies sold to them have clauses in the fine print that somehow except them from paying claims for the COVID-19 business interruption. The hospitality industry has been hard hit by the mandatory “social distancing”; the restaurant industry is expected to sustain losses of at least 8 million jobs out of 18.6 million overall, and over $240 billion losses in revenue this year, and hotels & resorts will also lose similar numbers. The US insurance companies claim that they don’t have to pay anything to their hospitality customers because the losses are not due to physical damage, such as fire or flood.
People are expecting that their elected representatives i.e. Congress will mandate that the insurance industry honor the policies they sold.
Don’t be surprised if they do NOTHING! Congress has been in the pocket of the insurance industry for years.
A raft of lawsuits has already been filed in Los Angeles and San Francisco and they are consolidated into “class action”.
That’s where the real battle is going to take place; in the courts, when the restaurant and hotel industries start filing in Louisiana, Massachusetts, Connecticut, New Jersey, New York, Florida, Washington DC… wherever there are restaurants and hotels that have been milked for years by assorted insurance companies that are now summarily refusing to honor the policies they sold.
According to lawyers involved in the law suits “…the argument that the corona virus doesn’t create a dangerous property condition is a lie. The insurance industry has a PR campaign which misrepresents the policies and what they owe, and they gaslight everyone!”
Unfortunately, litigation will take years to resolve.
The insurance industry is already mobilizing its lobbyists and pet senators to demand that the US government actually reimburse them, if they are forced by the courts to honor the sham business policies they have been selling!
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