Small businesses have clearly been significantly damaged by the COVID-19 virus crisis. The determination of whether there is the potential for recovery of these losses under “business interruption coverage” will depend on the specific language of your policy. Several suits have been filed around the country against insurance companies to recover these losses. The insurers are generally taking the position that standard business interruption policies do not provide coverage against infectious diseases such as COVID-19 and that the premiums were not actuarily priced to cover situations where the losses are catastrophic and almost universal to all businesses.
Some businesses purchase what is known as Supply Chain Insurance to protect against interruption in their supply chain. There is also some question on whether this type of insurance will apply in this COVID-19 pandemic.
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If you have losses that you believe should be covered under your business policies, our firm stands ready to review the language in your policies and to give you advice on your lost/reduced revenue claims. We are experienced in insurance litigation to make sure our clients get what they paid for and nothing less.
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