COVID and Business Interruption

Covid-19 is causing many interruptions in the normal course of business for many.  Business interruption or business destruction insurance has come to the rescue for some small businesses.  Others …. not so much. While we certainly hope nothing like this happens again, it’s important to be prepared as we look forward.

We always recommend that our clients add business interruption or business destruction liability protection to the business insurance policies.

What is Business Interruption Liability Insurance?

Business Interruption is exactly what we are going through right now.   Restaurants, bars, salons, gyms … all closed with nearly no notice.  And the plans to reopen are ambiguous at best.  Social distancing and fear among the public has given a devastating blow to other business types as well.  Business Interruption Liability provides various levels of financial compensation to a business when their operations are disrupted.  Compensation depends on your specific coverage.

Verify your Coverage

Every business owner should review all of the provisions of their insurance, especially  business liability coverage to determine if you are covered.  If you do not know or can not find it in your insurance policy, call your agent.

Keep in mind that insurance carriers love to build in language within a policy that disallows every possible claim they might come along.   With that in mind and depending upon the kinds of losses you have experienced its important to consult with an expert before filing a claim.

If you need guidance to navigate through this very important topic, don’t hesitate to contact our office.