As restrictions due to COVID-19 and social distancing continue, businesses face significant challenges, including store closures, reduced customer traffic, supply chain disruptions, and facilitating remote work for employees. Many business owners are asking if coronavirus losses are covered by insurance.
Insurance coverage is always dependent on the specific language of the policy. Every insurance company and risk package is unique, and exclusions versus covered losses vary. Claim scenarios must be reviewed by the insurance company who issued the policy to determine if losses are covered.
Many insurance questions regarding coronavirus center around a coverage called “business interruption insurance.” This is valuable coverage often used to protect a business from a physical disaster, such as a fire to their premises or a windstorm. You can learn more about business interruption coverage here:
In general, social distancing would not be considered physical damage, and this coverage requires a physical damage loss to trigger coverage. In addition, many policies contain a standard exclusion for viruses and bacteria. Again, coverage must be reviewed at an individual policy level.
We are all navigating new waters with the coronavirus pandemic. If you think you have a covered loss, remember that policy language varies greatly among insurance carriers. Carriers will not guarantee coverage without having received and reviewed a specific claim. Insurance coverage questions, such as whether coverage applies or if a policy will respond to any risk or circumstance, are subject to the specific terms and conditions of the policies, contracts at issue, and underwriter determination.
The following articles provide additional, general information about insurance and the coronavirus: