Business interruption insurance can help owners lessen their financial pain if a disaster makes it impossible to operate business as usual. Because of the intent behind business interruption coverage, pandemics and illnesses have historically not been covered by this type of insurance. For this reason, insurance companies have been issuing countless claim denials stating that business interruption policies do not include the economic losses incurred by business owners amid the coronavirus crisis.
As the coronavirus shutdown has not generally resulted in physical damage to company property, many insurance companies are maintaining these claims do not fall within the purview of business interruption policies. In some cases, the policy language of a business owner’s policies is clear, and there is room to contest a denial and assert a bad faith claim.