COVID-19, No business income, no insurance coverage?
March 17, 2020
With all that is happening around COVID-19 (business closures, people staying indoors, etc.), businessowners are worried about keeping their businesses operable with limited or no business income. Fortunately, there may be a solution to ease your worries.
Will my business insurance policy pay for lost business income?
The answer depends on whether your business insurance policy offers Virus and/or Bacteria coverage. Most policies contain a coverage exclusion for business closures due to Viruses or Bacteria, Civil Authority take over, and/or Communicable Diseases. Unless otherwise stated in your policy, there may be no recourse for loss of revenues under your policy contract.
Having said that, if these exclusions are not present in your insurance contract, you may have coverage to replace business income – check your insurance contract language for more.
Are there other resources to supplement or replace my business income during this pandemic?
Today, the Washington State Department of Commerce announced that some counties are now eligible for disaster loans from the Small Business Administration. These loans are low-interest loans intended to cover operating expenses of businesses affected by a declared disaster. For more information visit https://www.sba.gov/funding-programs/disaster-assistance.
If you need help reviewing your current business policy, do not hesitate to give us a call.