An important, indeed mandatory first step in the a successful business interruption / loss of business income claim based on the coronavirus / COVID-19 pandemic, is a thorough analysis of the policy. Insurance Services Office Inc. (ISO) has created widely used standard policy forms. One of the most commonly used standardized form is the business income and extra expense coverage form (CP 00 30). The coverage created by this commonly utilized form is set forth below.
“Civil Authority: In this Additional Coverage, Civil Authority, the described premises are premises to which this Coverage Form applies, as shown in the Declarations. When a Covered Cause of Loss causes damage to property other than property at the described premises, we will pay for the actual loss of Business Income you sustain and necessary Extra Expense caused by action of civil authority that prohibits access to the described premises, provided that both of the following apply: (1) Access to the area immediately surrounding the damaged property is prohibited by civil authority as a result of the damage, and the described premises are within that area but are not more than one mile from the damaged property; and (2) The action of civil authority is taken in response to dangerous physical conditions resulting from the damage or continuation of the Covered Cause of Loss that caused the damage, or the action is taken to enable a civil authority to have unimpeded access to the damaged property. Civil Authority Coverage for Business Income will begin 72 hours after the time of the first action of civil authority that prohibits access to the described premises and will apply for a period of up to four consecutive weeks from the date on which such coverage began. Civil Authority Coverage for Extra Expense will begin immediately after the time of the first action of civil authority that prohibits access to the described premises and will end: (1) Four consecutive weeks after the date of that action; or (2) When your Civil Authority Coverage for Business Income ends; whichever is later.”
Source: CP 00 30 10 12 © Insurance Services Office, Inc., 2011
Insurance companies routinely deny claims, and defend those denials in court. The attorneys they employ to defend these denials are typically some of the most respected and effective litigators in Maryland.