Civil authority coverage, if included in your business interruption insurance policy, can compensate you for any losses when a local, state, or federal government entity denies access to business premises. Coverage is generally provided when:
Access to the business is prohibited
And
Damages arise from a covered event under the policy
Civil authority coverage usually kicks in after a significant natural disaster, such as a hurricane, tornado, or earthquake, when considerable physical damage occurs close to the insured’s business premises. Coverage may apply even if the business itself remains undamaged by the disaster. However, since each policy is unique and coverage varies, you should consult with an attorney when a civil authority blocks access to your premises.