In addition to protecting the health and safety of their employees and customers, many businesses may be questioning whether they have insurance coverage for coronavirus-related losses.
The answer depends on the specifics of the situation and the types of policies in effect.
Many commercial property policies contain business interruption insurance or contingent business interruption insurance. In general, business interruption coverage is structured to reimburse for losses associated with unexpected interruption of company operations, including lost revenue and expenses.
Other policies also have the potential to provide coverage during this pandemic. Commercial general liability, supply chain/trade disruption, and worker’s compensation insurance are also potential places where coverage may exist to absorb direct losses suffered by the business.
The existence of coverage is situation dependent and rests on the actual policy language, underlying facts, and applicable law. If coverage is available, and a loss can be connected to COVID-19 and quantified, then appropriate time should given to ensure that the claim is presented in a professional, concise, and timely manner, outlining all aspects of the loss with supporting documentation.
This post was written Joshua Baker