Business interruption insurance, like all coverage, is technical in nature. It is intended to cover interruption from certain perils and in most instances, it addresses physical damage to a property or business which locks you out or makes it impossible for you conduct the business. Unfortunately, the SARS outbreak from 2002/2003 put the insurance companies on notice about the possibility of an interruption to business based on a pandemic and infectious disease outbreaks as a cause were often exempted from coverage in most generally offered business insurance policies. However, all may not be lost. You will have to examine your policy carefully to see if there is coverage for interruption by civil or military authority. Thus, you would argue that it was not the coronavirus that caused the interruption, but the federal or state executive order to close your business.
However, there is nothing you can take to the bank concerning your policy’s coverage on quick review. The policy must be studied. It may have limits on the length of coverage, sometimes as little as 14 days. It will undoubtedly have limits as to a Dollar amount. There may be waiting periods before a claim can be made. It is time to take out your insurance policies and have them carefully considered. If you believe you have a claim, and need some assistance with the highly technical language, please feel free to contact us.