As lawmakers finalize relief bills to stimulate a staggering economy, many business owners have looked for answers to avoid laying off employees as government mandated shutdowns have swept the nation. The common questions that has resonated with our clients: Does my insurance cover the coronavirus?
Business Interruption Insurance, also know as Business Income Insurance, pays for the actual loss of business income that you sustain due to the suspension of your business operations from a covered physical loss on your business insurance policy. This could include a storm, fire, or even a large theft if covered on your policy. When a business is unable to open due to a disaster, there is no revenue generated to pay rent, utilities, and other operating expenses that would still be required. This is where Business income applies. This coverage will reimburse you for lost income, extra expenses, and operating expenses during the period of restoration. In fact, it will even cover payroll for qualified employees so that you don’t lose your staff during an extended closure.