03/24/2020
Business Owners-
Business Interruption provisions in your Commercial insurance policies protect you against economic losses stemming from the closure of your operations due to a loss.
These typically include fires, hurricanes, water losses or other events that force businesses to close their operations as a result of being unable to function in their normal capacity.
Every policy is unique insofar as they have their own variations, definitions, endorsements, etc., but in general the language requires “Direct Physical Loss or damage by a peril not otherwise excluded,” or the like.
The questions thus become whether the actual and/or potential spreading of COVID-19 can be interpreted as a “direct physical loss” to the covered property, and whether an Emergency Order from an applicable state, county or city government could spawn coverage under Civil Authority policy provisions.
These questions are novel insofar as no virus (or really anything) has had the widespread impact in temporarily closing businesses in every county throughout the state/country like COVID-19, so there are no definitive answers, but impacted business should have their policies and losses assessed to see what benefits they could potentially be entitled to when the dust settles and these questions start being answered by the courts.
My team at SHERMAN LAW and I are available every day from 8am-8pm to discuss the losses your business is facing, the particular provisions in your policy, Emergency Orders in your city/county, and the potential effects thereof. I can be reached at 305 494 6345.
