Over the recent weeks, coronavirus has drastically impacted our daily lives. Businesses are being ordered to shut down. Revenues are unexpectedly gone. While governments scramble to try to contain the effects from the coronavirus, the question posed is whether there is any insurance coverage available to Northern Nevada businesses impacted by this virus. The answer is we don’t know for sure, but businesses should consider whether there is insurance coverage to cover portions of their loss of income. We would like to alert you to benefits that may be available to a business affected by the coronavirus and government orders relating to the coronavirus.
If you are a business that operates, hosts, or organizes events, you should check to see if you have event cancellation coverage. That coverage may trigger if the cancellation was in response to government orders concerning coronavirus.
For a general business, many commercial property policies contain coverage for business interruption. This type of coverage generally requires a physical loss or damage to property. Whether a coronavirus, or its impact leading governments to order a shutdown, is a “physical loss or damage” to property will likely turn on the interpretation of the language in the insurance policy. Some businesses may have broader coverages that may not require a “physical loss.”
The point is, in a time of financial catastrophe, a business should not overlook the possibility that some of the losses may be covered by insurance. You should not hesitate to contact your insurance company and determine the benefits available. The worst that can happen is the insurance company would deny your claim.
At the Law Offices of Matthew L. Sharp, we are here to help our community of Northern Nevada businesses to the extent we can.