The pandemic situation has left business owners in complete despair along with huge financial losses that seem never-ending. As entrepreneurs are looking for ways to mitigate their losses, they are reviewing their business insurance policies and coverages. Coronavirus pandemic has created situations that are very sensitive and subject to change. Therefore, it is advised that business owners stay updated with all government announcements.
Does your insurance cover for Coronavirus?
Business interruption policies have excluded coverage for any virus or bacterial outbreak following the SARS outbreak in the year 2003 after suffering from exceptional losses. The purpose of business interruption (BI) insurance policy, also known as business income insurance policy is to provide coverage claims for loss of income or temporary closure of business due to a natural disaster. Disasters include extreme weather conditions, fire, explosion, or any other catastrophe which results in substantial damage to property, hardship, suffering or possible loss of life.
However, due to the current circumstance, the government seems to be making amendments to cater for the losses individuals and business owners are facing. It is advised to stay updated with the government announcements and relief programs they are offering businesses to diminish losses occurring due to the COVID-19 pandemic.
Should you file for Coronavirus insurance claims?
The most important question is whether you can file for your insurance claims or not? As stated above, you will have to review your insurance policy to look for the coverage it provides. Generally, policies have been excluding viral outbreak coverage and do not provide for the current coronavirus outbreak. If such is the case, there are higher chances of receiving a denial for your claims.
Recently, there have been few cases where business owners are filing for coronavirus claims and are being approved by the Court. Therefore, before making any decision, get advice from an expert who will possess the knowledge of current rules and regulations to help you get your claims. Contact us now to get you connected to an expert and get you your claim.
Is Coronavirus a physical loss?
The business interruption policy typically states that only upon incurring direct physical loss or damage to property can make you eligible to apply for your insurance claims. Therefore, business owners are questioning whether coronavirus is a physical loss or not? Unfortunately, the novel coronavirus is not termed as a physical loss to the property. Hence, insured business owners cannot make claims for their loss under this clause until now.
However, this does not mean that you should not claim insurance. After consulting an expert, file for your claim as few Courts are approving claims from some businesses. If you have already received a denial for your claims, after recent rulings from the Court, you might have an option to counter that appeal. Stay up-to-date with government announcements on support for business and relief programs that will assist your business in mitigating the losses faced so far due to the COVID-19.