Requesting the state’s help for small businesses

Advocating for business owners who have either closed or suffered a steep decline in revenue, Nassau County Bridge Authority Chairman James Vilardi sent a letter on April 13 to the New York State Department of Financial Services Superintendent Linda Lacewell asking for her help.

Vilardi, a Hewlett resident and owner of a home building business, requested that Lacewell “issue a directive to insurance companies charted in the State of New York barring the ‘germ and virus’ exclusion and lack of ‘physical damage’ to deny legitimate claims.

When speaking to several business owners, Vilardi said he learned that insurance companies were flat out denying possible claims from businesses amid the coronavirus pandemic for business interruption because there is no typical physical damage to a business such as fire or a flood and applying the germ and virus exclusion.

Vilardi asked the Department of Financial Services to deem the business interruption that resulted from the civil authority – the governor’s mandate closure – to be the reason businesses should have their claims paid and not denied because it is because of a germ or virus.

“With a strict interpretation the claim would be denied,” he said, “the overriding fact is that it is the government telling the businesses to shut down.”

Business interruption insurance replaces lost income when a business is halted for some reason, such as a fire or a natural disaster. It also covers operating expenses, a temporary location move if needed, payroll, taxes and loan payments.

The Nassau County Bridge Authority oversees operations of the Atlantic Beach Bridge suspended toll taking to eliminate contact between toll takers and motorists and hopefully avert the spread of Covid-19. Vilardi said the bridge authority’s claim was already denied.

The bridge authority, though in a strong financial position with an A2 stable rating from Moody’s Investor Service had roughly $10 million of unrestricted cash or a very strong 900 days cash on hand, as of February 2020, officials said. The longer the health crisis lasts with no toll taking revenue would declines, officials said.

Dr. Richard Adler, a Lawrence resident, is part of a five-dentist dental practice in the Borough Park section of Brooklyn. Adler received a letter dated March 25 from his insurance company, Travelers, that basically said do not make a claim.

“My first reaction was frustration, you can’t fight City Hall and I didn’t want to do,” Adler said. “I first spoke to Jim [Vilardi] about something else, and he said it might be possible the State legislature takes up.” Adler said that doing only emergency dental work, the practice is generating only 10 percent of the revenue it usually does. There are more than 20 employees working at the practice.

Adler sent his insurance company a response letter. “Your letter dated 3-25-20 is based on a false premise,” he stated. “The reason I deserve ‘business interruption’ coverage is Not because I stopped working due to ‘virus or bacteria.’ I suffered an insurable loss because the government of New York state mandated me to close.” Adler said he has not received a response nor has he received responses to three subsequent letters he sent to Travelers and Marsh & McLennan, which sells Travelers policies.

Vilardi said he has yet to hear from the Department of Financial Services. To get businessowners paid,” he said is the best result, adding that there is a possibility that insurance companies could be reimbursed by the federal government as well. 

The Department of Financial Services did not respond for comment by press time.

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