Most entrepreneurs have general liability insurance coverage for problems that arise during the operation of their businesses. This is often used for situations such as a fire or flood at your office, or if someone gets injured on your premises.
What many business owners don’t know, however, is that their policies may also contain business interruption coverage. This can be a very valuable benefit if you are unable to operate your business because of something outside of your control. For example, we recently had a client whose office was closed for multiple days because the building’s HVAC unit went out, making the office unbearably hot and impossible to work at. Our client was able to make a claim against its policy and recoup some of the losses experienced during that outage.
This type of coverage can be incredibly important these days as many businesses are forced to close as a result of COVID-19. Some states are considering legislation that would require insurance carriers to cover business interruptions that occur as a result of the coronavirus pandemic. But until Illinois follows suit, you should review your individual policies to see what coverage you may have. Terms you may need to look for in order to determine if you have coverage are:
Understanding the ins-and-outs of your business interruption insurance is going to be especially important these days as we all try to work through the effects of COVID-19. Contact us today to discuss with us whether your policy covers a closure resulting from the coronavirus pandemic.