Articles, Analysis,
and Commentary

Does My Insurance Cover My Lost Income And Business Revenue Due To Coronavirus / COVID-19?

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. Each policy is unique, and the coverage provided, or not, is completely dependent on the language in the policy. A thorough review of any policy is the vital first step in assessing a valid business interruption claim. A thorough understanding of terms of the insurance policy is a key role of a business interruption claim attorney.

If My Business Has Been Closed Due To Coronavirus / COVID-19 Can I File An Insurance Claim For My Lost Income?

An attorney well versed in insurance disputes must review the specific language of your policy for coverage for a business interruption / loss of business income claim. A standard policy commonly used in the industry provides coverage for income or revenue sustained due to the necessary suspension of operations during a repair period. The suspension must be caused by where there is a direct physical loss of or damage to property at your business resulting from a specified cause of loss, as shown in the policy.

Source: CP 00 30 10 12 © Insurance Services Office, Inc., 2011

If The Government Closes My Business Due To Coronavirus / COVID-19 Can I File An Insurance Claim For My Lost Income?

Most insurance policies are written with broad grants of coverage for loss caused by specified risks or perils. The rest of the policy consists of exclusions and limitations. A thorough review of any policy is the vital first step in assessing a valid government closure claim. Each policy is unique, and a thorough understanding of terms of the insurance policy is an essential role of a business interruption claim attorney. A commonly used template in the industry provides coverage where a covered peril causes damage to property other than your business premises. Here, the insurance company will pay for lost profits and extra expense caused by action of civil authority that prohibits access to the described premises. This coverage is available if  "access to the area immediately surrounding the damaged property is prohibited by civil authority” and your business is with a one mile radius. Under this policy language will begin 72 hours after the time of the first action of civil authority that prohibits access to the described premises, and will last for 4 weeks.

Source: CP 00 30 10 12 © Insurance Services Office, Inc., 2011

I suggest you take the following vital first steps if you’ve sustained a coronavirus / COVID-19 related business interruption or loss of income.

  • Notify your insurance company, and fully comply with all of your obligations under the policy.
  • Create a timeline of events pertinent to your businesses closing.
  • Meticulously document all of your losses, damages and extra expenses.
  • Have an experienced business interruption attorney review your policy for loss of business income coverage.
  • Have an experienced insurance dispute attorney determine if other coverage such as civil authority, extra expense, or event cancellation may apply.

I battle insurance companies that have denied claims every day. I’ve litigated thousands of such disputes over the course of my career. If your business has been closed by the State, I’d be happy to discuss your coverage, losses and potential claims with you in a manner of your choosing. Please fill out the contact form on the site, or call me directly at 410-591-2835.

410-657-5962