A vital, indeed obligatory first action 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. Although the specific type of coverage will depend on the exact language of the policy, the industry has some commonly used templates. Insurance Services Office Inc. (ISO) has created widely used standard policy forms. One of the most commonly used standardized forms is the business income and extra expense coverage form (CP 00 30). The standard policy language provides coverage for "extra expense" as set forth below:
“Extra Expense a. Extra Expense Coverage is provided at the premises described in the Declarations only if the Declarations show that Business Income Coverage applies at that premises. b. Extra Expense means necessary expenses you incur during the "period of restoration" that you would not have incurred if there had been no direct physical loss or damage to property caused by or resulting from a Covered Cause of Loss. We will pay Extra Expense (other than the expense to repair or replace property) to: (1) Avoid or minimize the "suspension" of business and to continue operations at the described premises or at replacement premises or temporary locations, including relocation expenses and costs to equip and operate the replacement location or temporary location. (2) Minimize the "suspension" of business if you cannot continue "operations". We will also pay Extra Expense to repair or replace property, but only to the extent it reduces the amount of loss that otherwise would have been payable under this Coverage Form.”
Source: CP 00 30 10 12 © Insurance Services Office, Inc., 2011.