We still do not know the full extent of the health or financial impact of the Coronavirus. The impact of the social distancing measures imposed to curb the spread of the Corona virus is not known, and will not be for some time. What we do know is that virtually no business will emerge unscathed.
As businesses assess the losses they are suffering, it is natural to investigate what forms of compensation may be available. Most businesses already have a policy of insurance that may apply to losses suffered as a result of the Coronavirus.
Most property and casualty insurance policies contain what is called “business interruption” insurance. The language of insurance policies varies substantially, so the nature and extent of coverage provided to each business will differ. The language of the policies, however, commonly requires some physical injury or impact before the coverage is triggered.
Insurers facing staggering claims are certain to contend that the Coronavirus does not trigger business interruption and coverage. Their knee-jerk reaction may overlook the nature of the Corona virus, and how it may trigger coverage.
Most available information regarding the Coronavirus indicates it is caught through its presence on solid surfaces. A physical presence of the Coronavirus on surfaces may be sufficient to trigger business interruption coverage under existing policy language. Depending on the language of your policy, there may be several arguments you already have coverage for losses your business is suffering as a result of the Coronavirus.
As your business evaluates how to emerge from the economic slowdown being created by the Coronavirus, an investigation as to whether coverage is available under your business interruption coverage should not be overlooked.