Sheet Metal & Air Conditioning Contractors’ National Association

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Does insurance cover COVID-19 business losses?

Mar 19, 2020

Business Income Insurance-1180387704 600x400As losses continue to pile up in many areas of the country due to the coronavirus outbreak, businesses are looking to insurers to cover much of them. Business Interruption insurance covers loss of income suffered by an insured when damage to its premises by a covered cause of loss results in a slowdown or suspension of its operations. Coverage also applies to loss suffered during the time required to repair or replace property, which may, depending on the policy, include loss of use.

The insurance industry responded in February by developing two new endorsement forms to address limited coverage in response to certain civil authority orders relating to coronavirus. These forms provide coverage for actual loss of business income and extra expenses caused by a government order closing the insured’s premises or quarantining all or part of a business’s premises.

In the wake of past catastrophic events, many insurers had already excluded viral outbreaks from business interruption and other policies. The amount of loss covered is determined by a variety of factors. Please refer to your own insurance policies for your specific levels of coverage.

To learn more about business loss and insurance coverage, you may access the full article at Hunt Ortmann