Affected businesses should review their business interruption insurance. This coverage is intended to provide protection against losses a company experiences when it is unable to continue normal business operations and functions due to a covered hazard or peril. It may also cover associated extra expenses that a company incurs. However, as the global community experiences infectious and communicable diseases more frequently, insurers are starting to exclude coverage for related losses. It is important for businesses to familiarize themselves with all potential coverage.
On February 6, 2020, our office issued a client alert that discussed general insurance considerations related to the novel coronavirus.
This alert addresses five specific considerations related to business interruption coverage.