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Recovering Coronavirus Related Lost Profits through Insurance

Business interruption insurance (also known as business disruption insurance) is part of many property damage policies and intended to compensate for lost revenue and related lost profits when a business has to unexpectedly halt or reduce operations.  To the extent suppliers or customers are affected, contingent business interruption or leader property insurance may apply (leader property insurance provides coverage when a business is negatively impacted by the closure of an unowned property that would otherwise generate customer traffic to the insured).  Many policies also include coverage for interruption to property access by civil or military authority.  In the current environment, many businesses have been mandated by government authorities (i.e. civil authority) to close or significantly curtail operations in hopes of minimizing the spread of the coronavirus (COVID-19). Read more…