The Coronavirus pandemic has caused thousands of business to close their doors to customers, stop all business dealings and even layoff employees. Small businesses to large corporations are facing unprecedented decisions and look to their insurance coverage to help. Many Property Insurance or Commercial General Liability (CGL) packages have a Business Interruption clause in them. Business Interruption Insurance is simply protection against your business being unable to perform its business due to unforeseen damages. Like all insurance packages these clauses are highly complex with exclusions and rules. It is vital that during this crisis, you know what you are and are not covered for, and if your insurance company is cutting any corners.
Hundreds of small business owners and commercial groups have recently discovered if their business interruption insurance does or does not cover their business during these times. For the COVID-19 outbreak is important to know these two rules:
- Does your insurance cover your business in a pandemic?
- Does your insurance cover your business in a government mandated shutdown? (Civil Authority)
About Business Interruption Insurance
Business Interruption Insurance is a type of insurance usually attached to property insurance or Commercial General Liability (CGL) coverage. It promises to compensate the insured for the income that was lost during the time period of interruption resulting from disaster or damages. Standard period of interruption provisions are defined as the starting date of the peril, through the damages, and to the restored condition the loss.