Amid the rising concerns and awareness of the coronavirus pandemic, many businesses in Florida may be anxious to reopen their doors in order to keep their business afloat, especially those in particular who did not have the right, or enough, coverage to cover their losses during this time.
Now, more than ever, is an important time for companies to review their business insurance policies to determine whether they have enough coverage to extend beyond the usual concerns of a Florida business—shut downs caused by storms, hurricanes, fire, theft, etc.—to include pandemics and other crises the state, or even country, could potential face and result in a financial loss or property damage.
Business Interruption Insurance and Coronavirus COVID-19
As seen during the COVID-19 response of businesses and governments alike, many specific industries experienced a severe interruption to their business operations—restaurants, entertainment, hospitality, transportation, spas, and even some retail stores. Hopefully, these companies under these industries had an active business interruption insurance policy.
What is Business Interruption Insurance?
This type of policy is often purchased as part of a larger commercial insurance policy. The intent of this coverage is to protect businesses against income loss sustained from a disruption of their operations. Depending on your policy, this may include disruption to your customer base or suppliers or may be restricted to a “direct physical loss of or damage to” your insured property by a covered event or loss.
Specifics of Business Interruption Insurance
In the event of coronavirus closures, carriers may dispute whether the closure resulting from precautionary measures to sustain the health of the public constitutes as a “physical loss”; however, in several jurisdictions, courts have ruled that contamination or incidents that render a property uninhabitable or unfit for its intended use can constitute as a “physical loss”. In addition, policyholders may also be relived to know that coverage may also be available if their policy includes coverage for “civil authority” closures.
There are also other extensions of Business Interruption Insurance available. Communicable or Infectious Diseases coverage is a consideration some business owners may want to make if they haven’t already added this coverage, especially those in particular industries most at risk for contaminations that could render their business property uninhabitable like those in the hospitality or health care industries.
How Do I Know The Extent of My Business Insurance Coverage?
Whether you are only considering checking the verbiage of your specific policy because a need for filing a claim has arose or you are considering (or reconsidering) all of your insurance options to elect the most inclusive coverage, contacting an independent insurance agent can help you to receive an unbiased review of your current policy and an explanation of all types of coverages available to your business. Contact Magruder Insurance Agency for all of your Commercial Insurance needs.