Business interruption coverage is designed to compensate the insured in order to put them back in the same financial position they would have been in had no interruption occurred and allow the insured to recover funds in the midst of a crisis.
Policyholders and business owners alike could benefit from filing a business interruption claim. In times of peril, a business interruption policy claim can be the difference between life or death for your business. By analyzing our clients’ insurance policy and coverage information, our firm believes that it will aid in maximizing their recovery efforts during this world health crisis.
Though insurance companies will likely argue that the introduction of a virus does not apply as physical loss, certain courts across the United States have found that contamination that causes property to be unfit for its intended purpose does indeed qualify as a physical loss that triggers a business interruption claim.
Services
Have you suffered Physical Loss?
Physical loss is defined as a matter of policy interpretation on a case by case basis. Triggering a matter of physical loss relies on your businesses’ circumstances and the language within your policy coverage.
Civil Authority Coverage
An endorsement that will provide business interruption coverage when access to the business is impaired or prohibited due to an order of civil authority.
Ingress/Egress Coverage
This type of coverage for when access to your business is impaired. It does not require an order of Civil Authority.
Some courts have held that to trigger ingress/egress coverage doesn’t require physical loss.
Contingent Business Interruption
An extension of coverage that protects a business from income losses not from damage to the property but rather damage to property owned by others such as suppliers, vendors, or critical customers.
Virus Exclusion(s)
Some insurance policies may specifically exclude losses resulting from bacteria and/or viruses. These types of exclusion became more prevalent after the SARS outbreak in 2003 and subsequent outbreaks of Ebola and Zika. Some policies are endorsed to specifically provide coverage for losses resulting from “communicable or infectious diseases” without requiring a “physical loss.”
TAKE ACTION
By taking action using the following steps, our firm can and will assist you in filing your claim
Get complete copies of all of your insurance policies
Get the actual orders issued by various civil authorities
Keep track of your losses and additional expenses
Have your insurance policies closely reviewed for the specific coverage provided
Disclaimer:
No uniform answer exists to the question of whether property coverage will apply to coronavirus–related financial losses. Businesses that are suffering these financial effects should also examine their existing coverage and consider whether to include disease–related coverage enhancements in future coverage. The Insurance Services Office (“ISO“) has already introduced business interruption endorsements specifically applicable to coronavirus.