A select few companies offer commercial insurance policies that expressly cover pandemics. Most companies, however, offer insurance coverage for Business Interruption.
Business Interruption coverage in your commercial insurance policy insures against property damage, and the corresponding financial hardship, from loss of profit and extra expense.
The recoverability of a COVID-19-related loss will depend on the specific facts that caused the loss.
Policies will respond differently depending on whether the loss was caused by, for example, a general decline in demand caused by the pandemic, contagion on the premises, closure by government order, etc.
If business interruption coverage is triggered, an insured can expect to recover its loss of profit, any increase in the cost of working, such as additional labour or operating expenses, and extra expenses. All policies will have a maximum length for which they provide indemnity.
Business should read their insurance policies in order to ensure they are covered for all circumstances.
During the COVID-19 pandemic, business owners have been surprised to discover that they are not insured for pandemics or when insurance companies have denied their claims when they are covered for pandemics. Some business owners relied on the representations of their insurance brokers in making a final decision as to whether they should purchase coverage and what type of coverage should be purchased. JEWELL RADIMISIS JORGE LLPcan help in these circumstances.
Contact Our Law Firm Today
Our attorneys are experienced in handling insurance claims for businesses. Contact us for help with your business insurance coverage issues due to COVID-19.