In a time like the current pandemic of COVID-19, we are all experiencing some serious interruption. As individuals, itâ€™s come in the form our personal relationships, childrenâ€™s schools, sports, social events, networking, and even the everyday errand of running to the grocery store. Those restrictions are inconvenient and may be aggravating but in the end, not totally life changing. After all, some may even be enjoying the forced slow down and more time at home with their families.
But for businesses, itâ€™s a different story. Think about your favorite restaurant, retailer, hardware store, caterer or event venueâ€¦ your dentist, your hair stylist, your daycare and your gym. Think about how difficult it would be to tell employees of 20 years that you canâ€™t afford to pay them or that you have to close the doors. Think about the students that work hourly to pay their way through school and support themselves, already living paycheck to paycheck to make ends meet.
This is a tough time, no doubt about it. Itâ€™s terrible. And itâ€™s forcing business owners to look anywhere and everywhere for options. One avenue business owners are exploring is Business Interruption coverage on their commercial insurance policy, which is what weâ€™d like to clarify.
Unfortunately, in most cases, this type of coverage does not apply to any type of disease or outbreak. In the event of a natural disaster or man-made crisis, this coverage would help protect businesses against financial losses if they had to suspend operations or operate at a reduced rate/capacity.
Some of the things Business Interruption typically covers are:
â€¢ lost revenue
â€¢ rent and lease payments
â€¢ mortgage payments
â€¢ other loan payments and taxes
â€¢ employee payroll or relocation costs
This coverage may not extend for the situation weâ€™re in right now but itâ€™s comforting to know itâ€™s there when applicable. If thereâ€™s property damage, closure, or lack of operations that does qualify for coverage, this could get a company back up and running rather quickly. Suffering from economic shock and financial losses is stressful enough, so the silver lining in those situations would be that this is there to help.
There really isnâ€™t a great solution or magic answer to how weâ€™ll recover from this Coronavirus situation but if we can stay positive, band together, and help where weâ€™re ableâ€¦ surely, weâ€™ll come out of it okay and as best prepared as we can be to get to work on recovering.