Business Interruption Insurance & Coronavirus Claims
What Is Business Interruption Insurance?
Business Interruption Insurance is sometimes referred to as “business income insurance” and it serves as the last line of financial defense for businesses during disasters and pandemics. This type of policy provides coverage for businesses experiencing unsurmountable financial losses during events such as fires, natural disasters, and global outbreaks. Most business interruption insurance policies cover things like extra expenses, employee wages, and loan payments.
Business interruption insurance can also be paid out if government actions cause operations to cease temporarily, causing financial loss. Nevertheless, it is important to note that not all business interruption insurance policies are the same and your coverage may differ depending on your policy. Furthermore, business interruption insurance is not sold as a separate policy, but rather, as an add-on to your existing insurance policies.
Business Interruption Insurance & COVID-19
The COVID-19 disease caused by the novel Coronavirus has led to major disruptions to businesses and governments alike. This pandemic is likely to spark a high volume of business interruption insurance claims but not every business will be covered. Case in point, after the Severe Acute Respiratory Syndrome (“SARS”) outbreak in 2002, many insurance companies wrote their insurance contracts to exclude virus pandemics from this type of coverage.
To determine whether your business may have interruption insurance covering it for losses associated with the Coronavirus outbreak, a qualified lawyer should review your business’s insurance policies. Businesses pay these kinds of insurance premiums precisely so they can be protected during turbulent times likes these. If your business is covered, you should make a claim without hesitation.
Here at VB Attorneys, we have decades of experience battling and defeating the largest insurance companies and corporations in the world. It’s what we do on a daily basis. For a free consultation on your potential coronavirus business interruption insurance claim, please contact us by clicking here.