Fear and panic about the spread of the novel coronavius, Covid-19, has all Floridians on edge for the personal health and well being of themselves, friends and loved ones. Beyond personal health, the state of Florida, as a major international travel destination for vacation and business travel, is uniquely susceptible to business losses stemming from cancelled trips and conventions.
As businesses in Florida start to lose business from these cancellations, it is time to take stock of what insurance businesses may have in their portfolio that may provide coverage for such losses. The primary insurance that businesses may have is Business Interruption Insurance.
Business interruption insurance protects businesses against income losses sustained as a result of disruptions to their operations. Business interruption coverage is typically triggered when the policyholder sustains "direct physical loss of or damage to" insured property by a covered cause of loss. In the event of a claim for coronavirus-related business interruption, certain insurance carriers may dispute whether this "physical loss" requirement has been met. The determination of whether "physical loss" has occurred will depend on the particular facts of each case. However, some Courts have held that contamination does constitute "physical loss."
Some specialized professions, like health care and professional services may have special insurance coverage that may provide benefits to business owners for downturns in business.
It is important to remember that every situation is different, and coverage will ultimately depend on the facts of the loss and the specific policy language. If your Florida business experiences losses from the coronavirus outbreak, contact us for free consultation and analysis of your insurance coverage.