Many businesses have seen, or are expecting to see, a loss of income or an increase in expenses due to the slowdown of business activities associated with the spread of COVID-19. Are these losses or expenses covered by your business interruption insurance?

Business interruption insurance coverage is a part of most commercial property insurance policies. It covers loss of business income if there is “direct physical loss or damage” to your insured business property. And then, only if the physical damage was caused by a covered peril <https://WymanLegalSolutions.us18.list-manage.com/track/click?u=b473ae4fa843fc144f2b4b0be&id=ae3e7e187f&e=4beffc6fe7> . An interruption in business not caused by physical damage to your property is usually not enough to trigger coverage. Also, many policies specifically exclude losses claimed from viruses and epidemics.

However, some policies contain additional coverage not seen in the typical policy. For example, some policies provide coverage if a “civil authority” prohibits access to your business premises as a result of property damage elsewhere. Other policies provide coverage if a critical supplier cannot provide you with the supplies you need to carry out your business, even if your property did not suffer direct damage. Again though, these coverages are generally only triggered if physical damage occurs somewhere.

Although losses from viruses and epidemics are usually specifically excluded under policies, insurance has evolved over the years to provide specialized coverage options for almost any imaginable circumstance. As with all business insurance coverage questions, your specific industry, your policy language and the circumstances of the loss will dictate if you can get reimbursed for the interruption of your business.

If you believe that your insurance should be responsible for your COVID-19 related business losses, call our office to speak with our experienced business interruption insurance attorneys today.