Was your Commercial Property or Business affected by Covid-19? You may have insurance coverage for your losses. All Claims USA Public Adjusters and our partners are working closely together to support and represent clients with business interruption related claims.

What is Business Interruption?

Business interruption coverage is usually purchased as a part of a business’s property insurance policy. It is designed to reimburse businesses for lost profits due to unexpected losses causing interruption to their normal operations. In most policies, this coverage is only triggered when the business actually suffers direct physical damage to the building/brick and mortar building. A great example of this scenario is where a car unexpectedly crashes through a fast-food restaurant’s store front and now the business cannot operate at all or is operating at a reduced capacity while the property is restored. Loss of “business income” is typically calculated based on the business’s actual loss of income sustained due to the necessary suspension of the business during the time period the business owner works to restore normal day to day operations. Customarily the business’s recovery of lost earnings hinges on the period of restoration and its direct effect on the dollar amount of profits lost. Each commercial policy differs and limits the period of restoration and how business income is calculated.. However, business interruption coverage is extremely valuable to business owners in the wake of the Covid-19 pandemic and could provide a small business with coverage during this uncertain time.

What is Civil Authority Coverage?

Civil Authority coverage is usually an additional or optional coverage to supplement coverage for a situation where a loss occurs due to a governmental entity issuing an order restricting access to the business’s property. Numerous states and local municipalities have issued executive orders limiting access to businesses if not closing them down entirely due to Covid-19. 

What is Contingent Business Interruption Coverage?

What is Contingent Business Interruption Coverage? Most commercial policies have “Contingent Business Interruption” coverage that covers losses where damage from the virus disrupts a business’s supply chain and even if it occurs far away from your business. An example that might cause this coverage to come into play would be where a business cannot get materials to manufacture its product because a factory was shut down in China due to the virus.

Virus Exclusion:

Some commercial policies have exclusions that specifically exclude coverage for losses caused by a virus, but most policies do not exclude such losses. A majority of policies have exclusions for “pollution”, “fungi” or “bacteria”. However, this is not the same thing as an exclusion for “virus”. Moreover, even if a policy has an exclusion for “virus” that exclusion may not necessarily apply to all a policy’s different extensions of coverage and apply to current situation we are experiencing from Covid-19.

Bottom line, it is a good idea to have a professional take a close look at your insurance policy’s wording, as well as the circumstances driving the business’s losses and see if there is coverage for some or all those losses due to Covid-19.

We are devoted to making sure our clients receive a fair and rightful settlement for their claim. We are A+ rated by BBB, check out our client testimonials and case studies. Call us at 866.900.8811 for a free claim assessment and consultation. 

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