14 Mar Corona Virus – Business interruption – March 2020
Corona Virus – Business interruption – March 2020
I have been getting lots of calls and emails asking me if there is coverage for business interruption on your insurance policy due to the Corona Virus.
This is not a new situation, similar situations in the near past were H1N1 virus, Ebola Virus, Bird Flu, just to name a few.
Business interruption insurance or loss of income coverage is triggered when a business suffers a loss in income as a result of a disruption of their operations. The question is, does the coronavirus-based disruption trigger coverage?
First it is important to understand that each carrier may differ in coverage, and you should read your policy to see if they provide coverage in some form. Typically, the business interruption coverage applies when the insured suffers a “direct physical loss of or damage to” insured property as a result of a covered cause of loss.
Most insurance policies have a virus and bacteria exclusion or limitation endorsement, since it is an excluded peril – there will be no coverage.
Some clients have been calling thinking that maybe under the civil Authority orders endorsement they may have coverage- but again, Virus is an excluded peril.
Also, business interruption has a 72 hour waiting period, which in this time, the virus would die, or the same virus exclusion form will apply.
I can’t make a general assumption that you do or don’t have coverage, so go and read the forms and check. coverage is fact specific on the details of your personal situation.
If you are still not sure and want a definite answer, we are happy to help you file a claim with your carrier and let them review your policy and determine coverage.