Coronavirus and Loss of Business Income Insurance

The Covid-19 virus, also known as Coronavirus has affected many businesses. If you hold a business package policy or business owner policy you may be wondering if your policy will cover the loss of income you may have been suffering. The short answer is NO. Most policies have a bacteria or virus exclusion for property insurance. In order for business income to be triggered there needs to be a covered cause of loss.

Insurance Service Office has drafted Coronavirus specific endorsements, but they have yet to be adopted by carriers or approved by individual state departments of insurance. The virus has spread quickly and the insurance marketplace does not move as fast as the virus. Stay tuned to this blog for updated to any potential changes in coverage that we may see or hear about.

In the meantime, the Independent Insurance Agent and Brokers of America website has some valuable resources if you would like to understand more about the Coronavirus and insurance.

https://www.independentagent.com/resources/Pages/coronavirus.aspx