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Business Interruption Insurance


The COVID-19 pandemic has had a wide range of unanticipated consequences for people across the world. Business owners, in particular, however, have been hit especially hard, with thousands of companies permanently closing their doors over the last month. While it is true that business owners who have business interruption insurance may be able to protect themselves from significant financial loss, understanding an insurance policy’s coverage in regards to a widespread illness can be difficult, so if you own a business and have questions or concerns about your own policy’s limits, please contact our experienced business interruption insurance legal team today.

What is Business Interruption Insurance?

Business interruption insurance policies are specifically designed to provide business owners with financial stability when they are unable to do business because they have suffered a direct, physical loss because of a storm, fire, or flood. While a virus would not normally be viewed as causing physical damage to a business, many advocates state that these policies could be interpreted as creating a dangerous work environment or business premises if:

  • One or more employees have been diagnosed with the illness, or the company premises have otherwise been contaminated; or
  • A local government has mandated closures under civil authority to prevent the spread of the virus.

Fortunately, the language used in a business interruption insurance policy itself should help policyholders get a better grasp on their specific coverage. If, however, the language of a specific policy doesn’t include a reference to illness, an insurer could opt to interpret the fine print in a way that results in a claim being denied or underpaid. Delaying, denying, or underpaying this type of claim during a health crisis like COVID-19 could have devastating financial consequences for the business owner in question, so if you have questions about your own policy’s coverage, it is important to speak with an attorney who can help you present a strong claim to your insurer.

Interpreting Your Policy

As the pandemic continues to close businesses across the country, interpreting business interruption insurance policies has become more and more important. When attempting to discover what their policies cover, business owners should assess whether their policies have Business Interruption (BI) coverage and determine whether their contract has any exclusions that could disable coverage for an incident triggered by a pandemic. If a policy could be interpreted as providing coverage for the COVID-19 emergency, the policyholder may be eligible for compensation if he or she can provide proof of the documentation needed to substantiate the claim. Unfortunately, even when a claim is valid, an insurer could deny it out of bad faith. To ensure that this doesn’t happen to you, please call our legal team today.

Experienced Business Interruption Insurance Lawyers in Fort Lauderdale

If you are a business owner and have a business interruption insurance policy, you may be entitled to compensation if you were forced to shut down your business because of the coronavirus or a mandatory quarantine order. Please call the dedicated business interruption insurance lawyers at Boone & Davis today to learn more about how we can help. You can reach a member of our legal team by calling 954-566-9919 or by completing one of our online contact forms.



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