What is Business
Interruption insurance?

What does it cover?

Business interruption protects you from financial loss when you are unable to operate. The COVID-19 outbreak has raised questions about whether that coverage includes pandemic-related losses. The short answer is, it depends on the terms of the policy and how the insurer, and possibly the courts, interpret them. Some state legislatures are also getting involved. Brownrigg Insurance focuses on understanding business interruption trends.

• BI claims are triggered when a business faces a loss of income because of a temporary halt of operations due to a covered event.
• Unless a business interruption policy specifically lists pandemics or contagious illnesses as being covered, they may not be.
• Some states have introduced legislation that would apply business insurance coverage to pandemic-related losses retroactively.

Brownrigg Insurance focuses on understanding business interruption trends.

What's at stake if I don't have this?

A typical business interruption policy will include property, liability, and business income coverage. So you're covered against losses stemming from damage to your business property or its contents caused by a covered peril, as well as personal liability claims or loss of income if the business has to close temporarily.

Covered or named perils depend on the terms of the policy, but they may include:

• Fire damage
• Damage from wind or falling objects
• Lightning damage
• Theft

Generally, damage caused by riots, vandalism, or civil unrest are covered by business interruption insurance policies, as well, unless your policy specifically excludes those events.3

Damages related to flooding, earthquakes, or mudslides may not be covered under a standard business interruption insurance policy. But you may be able to purchase additional coverage for those risks.

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