COVID-19 and Business Interruption Coverage

The restrictions put in place to halt the spread of COVID-19 including social distancing, stay-at-home orders, and quarantines are critically impacting businesses.  MSN is currently reviewing insurance policies for businesses who may have suffered financial losses due to business interruption caused by the coronavirus (COVID-19) and those that have been ordered to suspend operations by their local or state government.  Business interruption coverage is often included as part of a company’s business insurance package issued to businesses such as Business Owners Policies (known as ‘BOP’ policies). These Business Owners’ Policies typically also provide general liability coverage, commercial property damage coverage and business interruption coverage.  Additionally, most policies also provide coverage for losses due to governmental action or governmental shutdown. This coverage could extend to business closures, cancellations or inability to conduct normal business due to actions taken by governmental authorities. Every potential case depends on the language of the individual policy and all businesses suffering losses should be aware that coverage may be possible and we are available to assist you in reviewing your policy for coverage.

Additionally, the State of Alabama Department of Insurance issued an Order on March 30, 2020 recommending insurers to work with policyholders on cancellations as a result of the COVID-19 pandemic.

This Order states in part:

• In light of current circumstances, the Alabama Commissioner of Insurance hereby recommends insurers consider the following actions for applicable policies in force as of March 13, 2020;
• Relaxing due dates for premium payments,
• Extending grace periods,
• Waiving late fees and penalties,
• Allowing premium payment plans which will avoid a lapse in coverage,
• Expanding automobile coverage to allow personal vehicles to be covered while delivering food, medicine or other essential services for commercial purposes

If you are suffering business losses due to governmental closures, supply chain disruptions or illnesses related to the coronavirus, we are here to help by reviewing your insurance policy and in evaluating any potential claim.  Please contact us anytime.