Business Interruption Insurance Might Not Cover Virus Closures
Many businesses have closed their doors or scaled back their operations due to the coronavirus. But that doesn’t mean insurance policies will cover their losses.
Companies often carry something called “business interruption insurance.” It’s meant to safeguard against unplanned closures which result in a loss of income.
But despite the name, most policies don’t cover every type of possible interruption. The Oregon Department of Consumer and Business Services says typically, the plans reimburse for lost revenue due to property damage, such as from a fire or vandalism. The agency says most policies exclude events such as a public health emergency, even if the only reason the business has closed is due to a government mandate.
Business owners are encouraged to check their policies or contact their insurance provider for more details.