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When a catastrophe strikes, your first concern as a business owner is the safety of your employees and staff. Companies are facing unique challenges to their businesses, including supply chain interruptions, employee and customer safety concerns, and government regulations, restrictions and shutdowns. Large scale catastrophes like COVID-19 cause tremendous and long-lasting economic damages. And while you and your company may have procured insurance to protect yourselves from such events, business interruption claims are frequently some of the most difficult and hotly contested of all insurance claims.
In order to have a valid and successful claim, you must meet two requirements:
- 1. The loss must result from a covered cause, meaning it can't be listed as an exclusion in the policy; and
- 2. There must be a direct physical loss or damage to your business property.
The second requirement is where your claim may get complicated. There are situations where Covid-19 and other contagious diseases do cause physical damage or loss to a business.More Info
The COVID-19 pandemic may slow down or even shutdown your business. It may have impacted your revenue or income. However, using technicalities in the policy, the insurance company may deny your claim as your losses do not meet the definition of physical damage.
There are situations where Covid-19 and other contagious diseases do cause physical damage or loss to a business. You may have had to close the business to decontaminate. Here in Pennsylvania, you likely had to close because the government has imposed restrictions which have prohibited physical access to your business, causing interruption and a loss of revenue.