Business Interruption Coverage for COVID-19 Losses: You Can Satisfy the “Physical Loss or Damage” Requirement in Your Commercial Property Policy

Although your insurance company undoubtedly will try to convince you that you have no coverage for your business interruption losses from COVID-19, do not be so quick to accept the insurer’s position. In its simplest terms, the business interruption coverage in most commercial property policies provides coverage for a covered cause of loss if (1)

Check Your Commercial Property Policy for Potential Coverage for COVID-19If your organization sustains COVID-19 losses, carefully examine your commercial property insurance policy for coverage. Although your insurer may deny coverage by claiming that your policy requires physical loss or property damage, do not accept that assertion. Adhesion or attachment of the coronavirus onto an insured’s property may constitute “direct physical loss” and trigger coverage

New Jersey to Legislate Business Interruption Coverage for COVID-19Commercial property insurance policies frequently include business interruption or loss of business income coverage when a covered “cause of loss” creates a slowdown or reduction in business income. Companies suspending operations due to the COVID-19 pandemic should assess the availability of insurance coverage for those losses, particularly under business interruption policies. Even if that coverage