Business interruption insurance (aka business income insurance) has left insurance companies sweating over the past weeks as we all face new challenges associated with COVID-19. Many insurance policies forgot to include what they will or will not cover when it comes to a global pandemic and they also never differentiated what they will cover when a situation concerning civil authority takes place.

What Is Business Interruption Insurance?

Business interruption insurance is also called business income insurance because it is insurance that businesses pay into in case their income is ever stunted for a reason that is out of their hands. It is meant to help replace any income a business loses if it is unable to open for a period of time after a covered loss occurs. Covered losses are stated in each policy but generally include incidents such as property damage or civil authority, which is when a government agency prevents access to your business so your stream of income is cut off.

What It Usually Covers

The insurance is in place to cover lost revenue, mortgage, rent or lease payments, loan payments, business taxes, payroll if there are employees, and relocation costs if the business had to move due to property damage.

How It Relates to COVID-19

Depending on your policy, you may be eligible for business interruption insurance. Some policies may explicitly exclude coverage for communicable diseases but others may have been vague or never commented on it, assuming it is implied that they will not cover any losses due to a virus. It is important to review your insurance policy and see if you may already have coverage for losses due to a virus. If civil authority has prevented you from running your business, it should not matter what the government agency’s reasoning was. Your business is unable to proceed with business as usual, therefore you should be eligible to claim what you have lost.

Another thing to keep in mind is you may be eligible for cancellation coverage. That is, if you had to cancel an income-producing event due to the coronavirus, you may be able to receive restitution.

How We Can Help

Properly combing through your insurance policy is the first step. We are highly experienced in the area of insurance claims and will be able to thoroughly examine your policy and see if you have the right to your lost income. If there is a chance that your policy will be able to recover your losses, then we will make a claim.

Do not call your insurance company before calling us. They might ask you for information that could be used against you and cause you to not get as much restitution as you deserve.

Call us at (954) 915-8800 and we can determine if you are eligible to claim your lost income.