Business Interruption Coverage for COVID-19?

In response to growing concerns of community spread of the coronavirus (COVID-19), sports organizations, local schools, and even the Houston Livestock Show & Rodeo have ceased operations for the foreseeable future. As businesses consider the human and health impact of this global pandemic, a common question raised is how any business interruptions and related financial losses may be covered by their insurance policies. Whether your business has drastically experienced economic loss or has temporarily closed its doors due to city-wide closures or travel restrictions, you may find relief from your insurance coverage provider.

Given the effects on our economic system of the coronavirus, policyholders should consider whether business interruption or event cancellation insurance benefits may be available to those carrying this insurance. Commercial businesses often procure business interruption coverage as part of their commercial property coverage. Business interruption coverage is designed to assist policyholders that suffer financial losses in their operations.

It is unlikely that the coronavirus will allow for a one-rule-fits-all conclusion when it comes to a determination of whether an insured has a compensable claim under the insurance policy. Rather, it is more likely that each claim will be investigated and evaluated based on the specific facts. And the orders by local, state, and the federal government will be important in this analysis as well. If you have a loss, check your policy for this coverage and consult with a lawyer who is knowledgeable in this area.

If you or someone you know has questions regarding insurance coverage as a result of an interruption of business, contact an attorney at Abraham, Watkins, Nichols, Agosto, Aziz & Stogner by calling 713-231-9360 or toll free at 1‑800-594-4884.