Many are wondering how the COVID-19 virus will affect their business. In particular, those that have purchased business interruption insurance.
In order for basic business interruption coverage to be triggered there must be property damage to the building or the contents, it can not be triggered by a slowdown in business, closure, quarantine.
We have been exploring the Extended Business Income Extensions that some insurance companies provide but it doesn’t appear that there is any coverage for the COVID-19 pandemic.
Civil Authority Extension
Interruption by Civil Authority extends to insure the loss of business income suffered (up to a specific number of weeks) while access to the premises is prohibited by order of civil authority, but only when such order is given as a direct result of physical damage to a neighbouring premises. Illness or disease is not an insured peril under this extension.
Negative Publicity Extension
Negative Publicity Coverage a portion of this extension does mention the outbreak of contagious or infectious disease at the premise which requires notification of a public health authority. As this is a global pandemic even if there was a communal link to your particular location it is unlikely that this coverage would respond.
Magenta Insurance Professionals understands the negative impact the pandemic is having on our businesses, families and communities, we are in this together. Our team are all working remote and are striving to answer calls and emails as quickly as possible.
If you need to reach us please email us at firstname.lastname@example.org