What is Business Interruption Insurance?
Business interruption coverage is additional coverage under your commercial property insurance that is generally designed to cover losses that result from direct physical loss or damage to your property after a disaster.
Do I have Business Interruption Insurance?
Maybe. You should contact your agent and ask for an explanation of your coverages. Your agent should clarify whether your policy provides business interruption insurance.
Will My Business Interruption Insurance Pay for Losses Due to COVID-19?
A thorough review of your policies is essential. Your business interruption insurance may cover losses that result from a necessary suspension of your business caused by direct physical loss of or damage to property at the covered location. The suspension of your business operations must be caused by a covered cause of loss.
But I Did Not Suffer a “Direct Physical Loss”
That may not necessarily be true. A “direct physical loss” can be interpreted in different ways. If your policy does not clearly define “direct physical loss”, it is open to interpretation.
I Cannot Open My Business Because of the Governor’s Executive Orders
You may be covered if you have Civil Authority Coverage. This is an additional coverage that may cover losses when a civil authority prohibits access to your business. You must read your coverages carefully.
What is Civil Authority Coverage?
When a civil authority (state, local or federal government entity) prohibits access to your covered location due to a direct physical loss of or damage to property other than at your location, from a covered cause of loss.
What May Be an Example of a Direct Physical Loss Of Or Damage To Property, Other Than at Your Location?
Access to the area immediately surrounding the damaged property is prohibited by civil authority as a result of the damage, and your covered location is within that area.
My Insurance Policy Contains an Exclusion of Loss Due to Virus or Bacteria
You still may have coverage, because your current policy may not have contemplated Covid-19 specifically. It is vital to carefully read all of your policies.
Where Can I Find What I Am Covered / Not Covered For?
Start by looking at your declaration page. It is the front page(s) of a policy that identifies the named insured, address, policy period, location of premises, policy limits, and other key information. You must also look at the individual coverage forms. These forms commonly contain the coverage conditions, exclusions, and policy definitions.
What Should I Do?
The most important thing you need to do is to contact your local agent. Your policy may stipulate that you have only a limited amount of time to file a claim. Call your agent and tell him you want to file a claim, even if you do not think you are covered.
Our legal team is ready to assist with your questions. We can review your current insurance policies and advise you of your options. Call the Guendelsberger Law Offices LLP at 860-354-4444 today.