By Robert E. Craven, Jr. and Nicholas L. Nybo on
Adler Pollock & Sheehan P.C.
As concerns regarding the spread and containment of COVID-19 (the “coronavirus”) grow, the specter of economic loss linked to the pandemic looms on the near horizon. Many businesses are already experiencing a loss in income and have incurred unforeseen expenses with cancellation of travel, postponement of events and work stoppages. Given the global ongoing outbreak, forward-thinking businesses may be considering whether their insurance policies cover losses linked to coronavirus. It is unlikely that such losses will trigger business interruption coverage.
Business Interruption Insurance
Commercial entities typically purchase business interruption insurance as part of their first-party property insurance. Though coverage varies (and businesses should review their policies with their brokers and attorneys) most business interruption policies protect businesses from lost revenue arising from an inability to continue normal business operations.
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