The COVID-19 pandemic has brought many unexpected challenges into the world. Other than the health challenges that many people have been facing, businesses have been facing economic hardships since many have been forced to close indefinitely. As a business owner, you might be using this time to plan your recovery from the pandemic.
Even with your emergency response and business continuity plans, you still might have trouble recovering financially through this time. If your business has been harmed by the COVID-19 pandemic, you might be interested in filing an insurance claim. Corban Gunn, Attorney at Law can help you if your insurance company denies your claim. Aside from a case, you’ll want to take steps to attempt to recover your business from this pandemic in other ways.
Making a Financial Recovery
Before you make the decision to file an insurance claim, there are some steps you can take to help your business recover. The U.S. Chamber of Commerce published a checklist for small businesses that details whether or not your business is eligible for the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which supplies aid to keep small businesses running and keep their employees on payroll. Small business applications for the loans began April 3 and independent contractors and self-employed individuals can begin applying on April 10.
More than filing claims or applying for the CARES Act, here are some steps you can take to help your business recover:
- Re-evaluate your business model. Your current business model might not be as efficient during this pandemic. Reconsider your revenue sources, who your customers are, what products you sell, and how you finance your business. For example, maybe you need to limit your products to what is most desirable during this time, so you don’t have excess expenses for products that aren’t necessary right now.
- Prioritize the safety of workers and customers. Allow your employees to work remotely if your business is non-essential. If you must stay open, ensure customers maintain social distancing practices or create a system that eliminates the need for your customers to come into the store. If possible, start a delivery system. If you cannot stay open, consider allowing your customers to pre-order goods for when you are able to re-open your business.
- Trim excess from expenses. Right now, you want to make sure you’re not spending money that isn’t necessary. For example, if you were selling products that are perishable, but realistically will not be sold before perishing during the pandemic, then cutting those products out of your inventory for the time-being will help your expenses.
- Consider supply chain. Right now, getting your supplies from local businesses might be your only option, as bigger businesses might restrict products. Anything you can do to support other local businesses and ensure you’re getting safe, cost-effective supplies are your best option during this time.
- Consider new technologies. You might not have considered using technology before, like an online ordering system, but right now, that could be a great asset. Many apps and websites make it easy for you to make your business available to the public for online ordering, pickup, and delivery.
Taking these steps into consideration for your business plan might be able to help you financially recover during the COVID-19 pandemic. Times will still be difficult but making these strides can keep you busy and productive.
Can You File an Insurance Claim?
Mandatory closures are likely affecting your business. If your business is deemed non-essential, then you are unable to remain open during this time, and you have no solid answers about when you can return to normal business practice. This can be frustrating, especially because your income relies on your business being open. Since it’s not your decision to close your business, you might want to file a claim for losses due to government closures, but what if you get denied?
If you are denied, Corban Gunn, Attorney at Law, can review your case and help you decide what legal action could benefit you and your business at this time. If you have questions about a potential case and would like to discuss your options, reach out to our office today.
We hope you, your employees, and customers all stay healthy and safe during these hard times.