~
1
BS
I
Consumerand
~
Division
of
Fin~~:::~:::~~:~::
350 Winter Street
NE,
P.O.
Box 14480, Salem, Oregon 97309-0405 503-378-4140 dfr.oregon.gov
Business interruption insurance
and COVID-19
Business
interruption
insurance coverage protects against
losses
sustained
due
to
periods
of
suspended operations. It pays
for
the
loss
of
revenue
that
would
have been earned
if
business was
not
interrupted. While there are
many
different
types
of
policies, coverage is typically triggered
only
by
property damage
or
loss. Many policies may have specific exclusions
for
viral infections, such
as
COVID-19.
Contingent
business
interruption
insurance policies protect against losses from supply chain
disruptions. This
type
of
coverage
is
also triggered
only
by
property damage
or
loss.
Cancellation
insurance provides coverage
for
expenses arising from delays, rescheduling,
or
cancellations
due
to
unforeseen covered events. Typically, policies exclude coverage
for
communicable diseases, such
as
COVID-19.
Some specialty business insurance policies designed
with
specific industries in mind, such
as
hospitality
or
retail,
may
provide some coverage
for
losses
caused
by
infectious disease. These policies
often provide coverage only
for
a limited
amount
of
time
or
up
to
a lower sublimit.
NOTE: This
information
was developed
to
provide general
information
and
guidance.
It
is
not
intended
to
provide a formal, definitive description
or
interpretation
of
your
policy. Contact
your
agent
or
insurance
company
to
discuss
your
coverage.
What
does
my
business
interruption
policy cover?
Your business
interruption
insurance policy should list
or
describe
the
types
of
events
it
covers. Events
that
are
not
listed on,
or
not
described in,
the
policy are typically
not
covered.
It
is
important
to
review
the
policy exclusions, coverage limits,
and
applicable deductibles. You should also determine
if
the
policy requires
your
business
interruption
to
last
for
a c
ert
ain
time
period before you are entitled
to
any policy benefits.
Business
interruption
coverage typically can be triggered
only
if
you have
propert
y loss
that
leads
to
the
business interruption. One example could be
that
a fire in
your
office
has
caused you
to
suspend
your
business activities.
Because coverage varies across policies, you need
to
read your particular policy and consult
your
broker
or
insurer
or
its age
nt
for
more information.
How
does
my
business
interruption
insurance policy
treat
the
coronavirus
(COVID-19)7
It is unlikely
that
a curre
nt
busine
ss
int
erruption
poli
cy has co
ntemplate
d
the
coronavirus specifically.
However, you should check
to
see
if
your
policy
has
an exclusion
that
would
disable coverage
for
an
in
ci
dent triggered
by
a pandemic
or
epidemi
c.
Al
so
, any claim still needs to be related
to
your
property damage
for
coverage
to
be triggered.
Do I have insurance coverage
for
my
business closure
when
the
government
mandated
it
because
of
the
coronavirus?
Most business
interruption
insurance covers
only
loss
of
income
that
results from physical damage
to
property. Business
interruption
policies typically exclude coverage
for
a pandemic/epidemic. A state
of
emergency declaration does
not
change
the
terms
of
your
business
interruption
policy and
is
unlikely
to
trigger
business
interruption
coverage.
Some policies may cover loss
of
income due
to
a pandemic/epidemic,
but
only
for
a limited
amount
of
time.
Contact
your
insurance company
or
agent
to
see
if
your
policy covers an epidemic
or
pandemic.
If
I
have
to
close
my
business
temporarily
because
of
staff being sick, can I
claim business interruption?
Insurance coverage can vary depending
on
the
type
of
policy you have. Check
with
your
insurance
company
or
agent
to
see
if
your
policy covers an epidemic
or
pandemic.
Most
business
interruption
policies cover business closures
for
events such
as
fire, a
burst
pipe, or a windstorm.
If
I cannot
do
business because
my
inventory
is
stalled overseas, can I claim
business interruption?
Most business
interruption
insurance covers
only
loss
of
income
that
results from physical damage
to
property,
so
it
is unlikely
that
stalled inventory
will
trigger
business
interruption
coverage. Insurance
coverage can vary
depending
on
the
type
of
policy you have. Check
with
your
insurance company
or
agent
to
see
if
your
policy covers an epidemic
or
pandemic.
If
I
have
to
close
my
business
temporarily
because
of
fear
of
contracting
the
virus in public places, can I claim business interruption?
Most business
interruption
insurance covers
only
loss
of
income
that
results from physical damage
to
property,
so
it
is unlikely
that
travel restrictions
or
space closures will trigger business interrup
tion
coverage. Check
with
your
insurance company or
agent
to
see
if
your
policy covers an epidemic
or
pandemic.
If you have questions or need to file a complaint on an insurance company or agent, contact the
division’s advocacy team at 888-877-4894 (toll-free) or email [email protected].
