• You pay premiums to cover your losses and expenses if your business is affected by a catastrophic event such as COVID-19.
  • Most business insurance policies can cover profits, operating expenses, wages, loan payments, taxes and even the cost of transferring operations to new locations.
  • Property and casualty insurance companies reportedly retain combined cash reserves of more than $800 billion. 
  • Insurance coverage disputes can center on arcane or obscure wording within policies. Often, insurance companies will interpret such wording against their premium-paying customers. Legal actions and regulatory requirements can force insurance companies to honor their policies.
  • Commercial policies often explicitly provide for coverage related to business interruption or offer special policy coverage, including for business stoppages ordered by civil authorities. However, during the current crisis, many insurance companies are ignoring these provisions while denying coverage – even if there are specific provisions for coverage in the event of contamination.
  • Businesses are being stymied by ambiguous language that seeks to exclude coverage in the event of a virus or pandemic.