Whether you have insurance coverage related to business closures or interruptions arising out of the COVID-19 pandemic is an issue with which courts and insurers have yet to grapple. How they will treat the unique issues that arise is not yet clear.

Coverage may depend on whether the policy you have has a virus exclusion or some other applicable exclusion. Coverage typically requires physical damage or loss or another covered peril that causes a business shutdown. Physical presence of coronavirus in the business premises may or may not qualify as “physical damage or loss.” Government closure orders or interruption of the businesses’ supply chain are other events that may trigger coverage. Specific facts matter and policy language varies so, when in doubt, make a claim.

The Vermont Department of Financial Regulation has issued a statement providing guidance on business interruption insurance coverage.

Visit our COVID-19 Resource Center for more information.

Have more questions? Reach out to Bruce Palmer: bpalmer@drm.com