As many operations close due to COVID-19 fears, there’s a growing question of whether or not business interruption insurance can help policyholders make up for lost revenue.
Business Interruption coverage is typically triggered under a commercial insurance policy when a covered risk/peril causes physical damage to the insured premises resulting in the need to shut down business operations. For example, if a fire damages a business and the business cannot operate during repairs, business interruption coverage would be available subject to the terms and limits in the policy. Earlier this week, the Maryland Insurance Department issued a bulletin advising of this. If your business closes due to the Coronavirus, it is important to know (again) that communicable diseases typically are not a covered peril that would give rise to insurance benefits for loss of income. It doesn’t matter if the loss of income is just from a downturn of business due to the loss of many customers or the actual closure of your business.
A communicable disease like the Coronavirus typically is not a covered peril, however, we standby ready to report your claim to your insurance carrier for them to review your request. To simplify the process, we have created a COVID-19 Business Interruption Loss Notice. Fill out the form and we will get the process started for you.
As with any loss, policy wording is critically important and could make all the difference when it comes to responding to claims. Policyholders should review exclusions and endorsements with a Deeley advisor to understand how their policy would respond.