Will business interruption insurance provide coverage for losses related to COVID-19? That depends on the terms and conditions of the insurance policy and the circumstances.
Right now, there are no reported cases in the U.S. regarding business interruption coverage in connection with human infectious disease epidemics or pandemics; however, commerce has never been as global as it is today – and the insurance industry is still responding to the pandemic.
Typically, under standard business interruption policies, recoverable business interruption loss has five required conditions: 1) physical damage 2) to insured property 3) caused by a covered peril, 4) resulting in quantifiable business interruption loss 5) during the period of time it takes to restore the damaged property.
Of course, business interruption insurance coverage comes with its own unique challenges.