The impact of the COVID-19 global pandemic has been expansive and rapid. It is not only affecting how people live their everyday lives, but is increasingly disrupting businesses across our country. Many companies, specifically those in the travel, hospitality, and retail segments, have been hit especially hard and forced to temporarily close down their locations.

All of these efforts by businesses to slow the spread of the virus has led to increased questions around whether Business Interruption coverage will respond on a company’s insurance policy. There are several key elements to consider throughout this developing and fluid process with insurance companies.

First, insurance policies are going to be unique to the needs of the business. It’s become increasingly important to do a thorough analysis with an insurance advisor of the policy wording and how a claim could potentially be considered. Reviewing coverage extensions and any applicable policy endorsements will help shape the conversation with the insurance carrier.

Second, when choosing to submit a claim, collecting all proper documentation around the pandemic’s impact is helpful. Doing this in a timely manner will also assist in having a claim reviewed faster by the carrier.

At this time, most property insurance coverage forms are not designed to provide Business Interruption coverage in the case of a virus. However, every situation will be evaluated on a case-by-case basis to determine if the terms of the policy do provide any coverage. Therefore, we are recommending to all of our clients that they submit a claim should it be appropriate, and allowing the insurance carrier to determine if the claim is covered.

We recognize that this an incredibly difficult and stressful time for many business owners. If there is any guidance that we can provide to help you navigate this process, please don’t hesitate to contact us.

Best Regards,

Johnny Prewitt & The Prewitt Group

205-397-5107 (Office)

205-960-1464 (Cell)

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