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What Businesses Need to Consider About COVID-19 Interruption Claims

As Florida continues to re-open, the effects on small business over the last few months are still being felt. While the mantras “eat local” and “spend local” are being advertised by many, and indeed will help, most businesses large and small need assistance now.

Businesses, secondary to any funding provided by the U.S. government, are looking to their insurance policies for potential relief. There are many types of coverage that may be prompted by COVID-19 including commercial property, commercial general liability, workers compensation, or even “sue and labor” coverage specific to ocean or inland marine policies.

Most general liability policies or a business owner’s policy will have sections dedicated to “covered perils,” meaning losses that are covered under the policy. Some may be more generally written, others may have more specific “perils” listed. For example, as a business owner, how do you tell if the current pandemic is a “covered peril” or the damage caused by the mandatory shut down of your business is included? Or, does the current pandemic fall under a long list of exclusions found in most policies?

Business insurance policies typically also require property damage to trigger business interruption coverage, and the question of whether the coronavirus causes such property damage may be crucial.

Interpretation of your policy is also key to determining what relief might exist, if any, and what documentation you need to provide to your insurer to ensure the best possible relief.

Our team is experienced in reviewing insurance policies for businesses to provide guidance on inclusions and exclusions to best navigate your business toward relief.

If you have questions regarding your business and potential insurance coverage for losses that your business has sustained due to the pandemic, please call us immediately as we are here to assist you.