Business owners please see below the response from the State of MD regarding Business Interruption Coverage and also you can see below the copied text from our Facebook Business Page regarding this as well.
Also this is my copied post that I put on our business page and response I have sent to several customers. Business Interruption Coverage.
Hi all I just heard on a call today another insurance agent address this subject and gave out some really bad advice to a number of business people basically suggesting that this could be a covered event for business interruption coverage. Please read below and if you have questions please contact your agent for advice. If you don't have one or don't know who to call we can try to assist.
So here is my take on this...while I am not a claims adjuster and the only way to be certain if a claim is covered is to file the claim and have the company review the policy verbiage as each claim will have it's own situation and also each policy may treat things a bit differently but generally speaking:
COVID-19. Based on my understanding of Business Interruption coverage to apply: there must be a direct physical loss to property. In order for us to have a definite answer we would submit the claim and allow the claims adjuster to show in the policy where there is coverage or it is excluded. This is a pretty good link that covers this topic as well: https://www.law360.com/…/4-key-coronavirus-insurance-covera…
On that link you will see how coverage could apply for work comp as an example. Another possibility of coverage is under a General liability but I think that is going to have to be worked out in the courts. As I type this I just read an article that NJ is trying to force coverage under business interruption coverage to be paid for this event even though it is a standard exclusion. https://www.whiteandwilliams.com/resources-alerts-NJ-Legisl…
***These are only examples and I am not offering advice on any specific policy. If you have questions about coverage or a claim it is always advised to call the claim into the company or review your policy with your agent
Thank you,
David
