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

Urgent Considerations with Harvey, Irma, and Maria Suit Limitations Deadlines Approaching Commercial Property and Business Interruption insurance policies customarily include suit limitations clauses to protect the insurer against lawsuits. These clauses may be found buried amid general conditions in the property form or in an endorsement. Their sole purpose is to shorten the otherwise longer statute of limitations and hinder your organization’s ability to challenge your