Many business owners are summarily being denied for their business interruption claims. This is for two primary reasons:
Many business interruption insurance provisions explicitly state “direct physical loss” as a primary factor for qualification for compensation. Although this is up for interpretation, many insurance providers interpret this to mean physical damage to your property due to specific conditions, such as flood and/or fire.
Many business interruption insurance provisions have specific clauses in their policies excluding coverage for any closures due to pandemics or viral infections. This was implemented back in the early 2000’s directly following the first SARS outbreak.