California Insurance Commissioner Ricardo Lara on Tuesday issued a notice requiring insurance companies and other California Department of Insurance licensees to comply with their obligations to fairly investigate all business interruption claims caused by COVID-19.

The notice follows numerous complaints from businesses, public officials, and other stakeholders of certain insurance representatives attempting to dissuade business policyholders affected by COVID-19 from filing a notice of claim under business interruption insurance coverage or refusing to open and investigate these claims upon receipt of a notice of claim, according to the CDI.

“I want to be absolutely clear that insurance companies need to fairly investigate all business interruption claims as they would during any disaster,” Lara said in a statement =. “Policyholders deserve all the services, coverage, and benefits they are due under their policy.”

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