How does business interruption insurance work in the event of a pandemic?
Business Interruption Coverage is designed to cover the loss of income that a business suffers after an unexpected disaster. Insurable losses such as fire, water, or theft are often covered under Business Interruption Coverage. However, these policies typically do NOT cover the financial impact caused by pandemics.
Since pandemics are considered rare in financially and politically stable first-world countries, very few insurance companies even offer coverage for these types of events.
Additionally, The Civil Authority policy extension does NOT cover the COVID-19 outbreak, regardless of if you are denied access to your building by civil authorities.
If you have additional questions about your commercial insurance policy, please reach out to your broker directly.