Business Interruption Review

We know from advising thousands of clients on tax credits, PPP/SBA loans, and other funding sources that many companies are hurting, they’ve been shut down and have lost money. Business interruption insurance, part of your property insurance policy is typically triggered when property is damaged or unusable as a result of a fire or other natural disaster. Some policies also contain a “civil authority” clause that covers income loss if a government denies access to a business, such as if a fire at a neighboring property has made the area unsafe.

Many insurance carriers have initially excluded coverage for viruses after another coronavirus, linked to severe acute respiratory syndrome, or SARS, spread across the globe from 2002 to 2004. But some policies don’t have such exclusions, setting the stage for a legal fight over whether the new Coronavirus known as COVID-19 and related government closures constitute the kind of physical damage to property that triggers coverage for business income loss.

Many commercial association advocates, governments (federal and state) and even President Donald Trump weighed in on the issue, saying that when exclusions don’t exist, “I would like to see the insurance companies pay if they need to pay.”Legislators in several states have introduced bills to force insurers to cover COVID-19-related claims for small businesses, even when policies have exclusions. The legislature has drafted a bill that has been circulating to create a government backstop to share business-related costs related to COVID-19. Many lawsuits have already been filed after company’s claims for losses filed against their business interruption insurance have been denied.

To help our clients during this time of crisis, myHRcounsel is providing free reviews of company’s business interruption insurance policies. Simply fill out this short form here and email your full Property Insurance and Business Income Policy (which contains the business interruption policy language) to info@myhrcounselstg.wpenginepowered.com Please note, you may need to get a copy of your latest policy from your broker. Your broker may tell you it the losses are not going to be covered, but rely on an attorney’s review to confirm, especially when the review is at no cost to you.