Has your business been affected by the current coronavirus crisis? Perhaps your clients, customers, and patrons stay at home, either because of a governmental order or just because they are afraid to mix with the public. Maybe your business itself has been ordered closed by authorities. Business owners wonder whether their insurance policies can provide any relief from these monetary losses.
Commercial property policies typically provide coverage for business interruption losses that result from “direct physical loss or damage” to the insured premises. Some policies also extend “civil authority coverage,” which provides coverage when access to a business is prohibited by governmental order due to physical damage within the vicinity (a specified radius from the premises), whether or not the business itself is damaged.