Business Interruption Insurance coverage is typically triggered under a commercial insurance policy when a covered risk or peril causes physical damage to the insured premises resulting in the need to shut down business operations. For example, if a fire damages a business and the business cannot operate during repairs, business interruption coverage would be available subject to the terms and limits in the policy.
When does Business Interruption Insurance Begin?
Most policies require a waiting period of 24 to 72 hours before business interruption insurance coverage begins and coverage continues for the reasonable period of time to restore the property and reopen, subject to the coverage limit of liability. Some commercial policies provide Business Interruption coverage when a business is shut down due to an Order by a civil authority. However, the policy still typically requires a physical loss from a covered peril as the underlying cause of the business shut down to apply.
Is Coronavirus Covered Under Business Interruption Insurance?
All insurance policies have exclusions of coverage for risks that are too great to be underwritten at an affordable price. For example, commercial and personal property insurance policies typically contain specific exclusions for loss or damage caused by war, nuclear action and radiation. The potential loss costs from such perils are so extreme that providing coverage would jeopardize the financial solvency of property insurers. Global pandemics like Coronavirus (COVID-19) usually fall into this category. However, policies can be different. We recommend that our clients review their policies and contact us to discuss any questions.
Florida Insurance Hub would like to reassure clients that we are closely monitoring insurance issues related to Coronavirus. As an agency, we are advocates for our clients, making sure insurance companies treat customers fairly and follow the provisions in their policy and applicable state laws.
For more information regarding BUSINESS INTERRUPTION INSURANCE, contact Florida Insurance Hub. Our goal is to help you manage your business insurance and to protect your company against lawsuits or claims. We strive to provide the best insurance coverage for the best value. Florida Insurance Hub represents over 60 top insurance companies offering custom insurance quotes and ideal coverage to fit individual needs and resources. Florida Insurance Hub is a local independent insurance agency serving all of Florida, including Titusville, Melbourne, Orlando, Tampa, and Jacksonville. We provide personal and commercial insurance quotes for homeowners insurance, auto insurance, flood insurance, umbrella insurance, commercial auto insurance, and business insurance. For a complimentary risk assessment, contact Florida Insurance Hub.
Florida Insurance Hub is a local independent insurance agency serving all of Florida, including Titusville, Melbourne, Orlando, Tampa, and Jacksonville. We represent over 60 insurers for homeowners, auto, flood and business insurance. Our goal is to help you manage your insurance risks and protect your assets. Florida Insurance Hub specializes in providing custom insurance quotes and ideal coverage to fit individual needs and resources. Online insurance quotes available.