Does Business Income Coverage Cover Loss due to COVID-19?
On March 11, 2020, World Health Organization announced the COVID-19 outbreak a pandemic.
What has been taking away the pleasure of everyday lives around the world has finally came to directly affect our lives in the U.S. The virus affects our life cycles that people are avoiding socializing with others and that leads huge business loss. Due to this tragic situation, business owners are looking for ways to recover their loss.
Business insurance could be first thing that comes up in our minds. However, business insurance policies contain several wordings that deny the coverage in response to current situation.
First, in order to seek business incomes coverage, the building or business personal property must sustain physical damage due to unexpected accidents like fire or tornado and in the condition in which the normal business operation is impossible.
Second, business insurance policies contain an exclusion list which is essentially a list of cause of loss that cannot be covered by the policy, and ‘virus’ is on that list.
Unfortunately, due to above reasons, business insurance policies do not provide coverages for business income loss due to COVID-19. The U.S. Government recently announced the possibility to enforce stimulus package to support individuals and business owners. Regardless, we, Cornerstone Insurance, are fully available to assist and support you and your loved ones, and we believe we are capable to get through this together. For any questions, please feel free to contact us.
