As a nation, we are all navigating unfamiliar terrain as we deal with the global pandemic that is COVID-19 (also known as the Coronavirus). During these unpredictable times, business owners have the added stress of ensuring that their business does not fold as we practice "social distancing" and markets fluctuate.
However, if you are a business owner take heart, there is light at the end of the tunnel. Check out the following tips on how you may recover any losses due to the Coronavirus outbreak.
IF THE CORONAVIRUS IS IMPACTING YOUR BOTTOM LINE, ARE YOU ENTITLED TO RECOVER LOST INCOME UNDER YOUR COMMERCIAL INSURANCE POLICY?
Business interruption insurance is intended to compensate businesses for lost income resulting from the interruption of their operations. For many businesses, this coverage is triggered when there is a “direct physical loss of or damage to” the insured property. Insurers will likely take the position that disruption caused by the coronavirus is not a “physical loss or damage,” but this inquiry is fact-driven, and depends on the particulars of each claim. You should get legal counsel if you are thinking about filing a claim.
Communicable or Infectious Diseases
This provides coverage for lost income caused by communicable or infectious diseases without requiring physical damage to the insured property. This type of coverage is frequently included in policies for businesses in the hospitality industry.
If the local, state or federal government prohibits or restricts access to your business, the “civil authority” provision in policies may provide compensation for any lost income resulting from the government’s prohibition or restriction.
This is intended for informational purposes, and does not constitute legal advice. An attorney-client relationship has not been established. This list is not exhaustive, and coverage is dependent on the language of each policy. Now is the time to review your policy, and if your policy does not provide coverage for the coronavirus, it is time to update your policy, especially since something like this will happen again.