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Is There Any Coverage on My Policy for the Coronavirus (Covid-19)?

Unfortunately, there is no coverage for business income loss during the outbreak, even if we are being told that we have to shut down our businesses and keep social distancing. Business Income Coverage is intended to cover the loss of income after a covered peril causes damage to property that makes it impossible for you to continue your business until repairs are completed. Because there is no covered peril that caused physical damage, there is no specific loss date.

The Coronavirus is different. There is no physical damage. A similar instance would be if the electricity went out in your area for several days (not due to a covered peril such as a hurricane or tornado) and your refrigerated property spoiled. Unfortunately, because there was no damage to the property, there is no ancillary coverage.

However, pay attention to any government-subsidized tax breaks or even stimulus packages for businesses that could help keep your business running. Also, we can negotiate with your current insurance companies to renegotiate payment plans for any upcoming payments. Lastly, most insurance companies base their rating on revenue or payroll, so you may also consider endorsing your policy to decrease your revenues or payroll based on more recent projections.