As coronavirus has rampaged across the globe and the United States, businesses are coming to a standstill. Amid lockdowns and general fear of the pandemic, many businesses have been forced to close their doors.
Coronavirus will result in many businesses seeking to use their business interruption insurance. Though this insurance is not typically used to compensate business owners for a pandemic, Covid-19 certainly meets the typical elements required for a business interruption claim to be viable: that typical business operation is halted due to disaster-related closing of the business facility or due to rebuilding after a disaster.
COVID-19 is a disaster. While this may not be along the same lines of physical destruction seen in a fire, earthquake, or flood, it could be argued that this is more devastating. The uncertainty around Covid-19 may affect businesses for a much longer period of time than other types of natural disasters. For businesses that were forced to close due to government orders in order to contain coronavirus, business interruption claims may be made for a loss of revenue caused by civil authority ingress or egress. This could include claims made due to the total closure of the business due to government order as well as a loss of revenue due to curfews.