Business Interruption Insurance and COVIV19

The COVID19 Pandemic has impacted every industry in almost every country around the globe. Businessowners whose insurance coverage includes Business Interrupton insurance are asking if their policy will respond to provide coverage from business lost as a result of the governement shutdown resulting from the Corona virus.

Most, if not all, business interrupton coverage forms specifically require the occurrence of a direct, physical loss to the insured premises in order to trigger the business interriuution coverage. Additionally, loss caused by virus is not listed as a covered peril.

However, this event is causing financial disruption unlike anything we have ever seen and it is too soon to say with any degree of certainty that insurance will not be involved in the financial recovery process as this event continues to unfold. The goverment will surely have much to say about how insurance companies will be involved.

At this time we recommend that ALL businesses maintain very good records of lost revenue, reductions in payroll, reduction in foot traffic, etc. In order to receive financial relief, whether from insurance or governmental assistance, you will be asked to provide detailed documentation evidencing the financial impact to your business. You will need to compare recent figures to figures from the same time period last year and possibly years prior.  When in doubt, keep track of it. This will all go a long way in helping your business recover sooner and more completely.

In the meantime, we strongly recommend filing for assistance with the Small Business Administration. Click here to vii the SBA website.