COVID-19: Responding to Business Interruption Claims

The novel coronavirus (COVID-19) has upended the global marketplace—forcing millions to shift to working from home, freezing entire industries, and stoking fears of a prolonged global recession. While the federal government has taken steps to stem losses, businesses are likely to turn to their property insurance policies in an attempt to recover for lost income and the costs associated with reopening their doors.

Importantly, whether businesses will be able to recover under their property policies is likely to turn, in large part, on the resolution of whether the existence (or potential existence) of the coronavirus in a facility amounts to “direct physical loss or damage.” Beyond this, policies may include certain provisions that remove claims beyond the scope of coverage.

In this article we address these issues and break down the answers for questions such as; “Does COVID-19 trigger coverage?” and “What exclusions are likely to apply?”, as well as steps you should take now for business interruption claims.

COVID BI Alert                  COVID Claim Considerations Checklist

For more information on Insurance Law, visit our website, or contact Mark Kressenberg, or Christene Wood to discuss your matter.

The novel coronavirus (COVID-19) has upended the global marketplace—forcing millions to shift to working from home, freezing entire industries, and stoking fears of a prolonged global recession. While the federal government has taken steps to stem losses, businesses are likely to turn to their property insurance policies in an attempt to recover for lost income and the costs associated with reopening their doors.

Importantly, whether businesses will be able to recover under their property policies is likely to turn, in large part, on the resolution of whether the existence (or potential existence) of the coronavirus in a facility amounts to “direct physical loss or damage.” Beyond this, policies may include certain provisions that remove claims beyond the scope of coverage.

In this article we address these issues and break down the answers for questions such as; “Does COVID-19 trigger coverage?” and “What exclusions are likely to apply?”, as well as steps you should take now for business interruption claims.

COVID BI Alert                  COVID Claim Considerations Checklist

For more information on Insurance Law, visit our website, or contact Mark Kressenberg, or Christene Wood to discuss your matter.