As a business dealing with Covid-19, it is important to gather all of your resources and understand how to use them.
If you have insurance for your small business, you should check the policy carefully. You may have insurance for “business interruption”.
However, even if you do have coverage for business interruption, there may be some conditions or exclusions. For instance, the policy may require direct physical damage to your business, rather than covering situations that cause you to lose business (like Covid-19). The policy may also have other restrictions or endorsements that deal specifically with viruses or diseases.
You may have endorsements on your policy that cover your specific business and industry. Examples are coverage for cancellations, and acts taken by civil authority. Whether or not this will cover our current situation will have to be determined.
You should also review the notice provisions that state when and how you need to contact your insurance company in order to claim coverage.
This is a novel situation for everyone. There will be plenty of chances for disagreement and confusion on interpretation and coverage. It is a good idea to get the opinion of a business attorney if you need assistance in understanding or enforcing your policies. It would be a shame to find out that you had rights that you didn’t exercise.
Remember, time is of the essence. There are deadlines to act, and if you miss them, you may forfeit your rights.
We are offering a free initial consult through May 31, 2020.