FAQ: COVID-19 Business Interruption Insurance
What does business interruption insurance typically cover?
Business interruption insurance typically covers a company's lost income during a "period of restoration" that must be caused by a "covered cause of loss", like a fire. This "covered cause of loss" is usually related to the damage of the property. The business interruption coverage should pay the lost income until the damage can be repaired and the business is restored.
Business interruption can also cover payroll, payroll related expenses and other normal operating expenses.
Because business interruption insurance can be different for each business, you should speak to your agent or company for more information.
Are the closures due to COVID-19 covered by my business interruption insurance?
Business interruption insurance does not usually cover communicable diseases, such as COVID-19. This insurance coverage replaces lost income if a business is closed for a reason related to property damage to the location, like a fire.
Because business interruption insurance can be different for each business, you should speak to your agent or company for more information.
What if I have a contingent business interruption insurance or civil authority business interruption insurance, will COVID 19 be covered?
Business interruption usually requires property damage. Contingent business interruption insurance covers when your property damage occurs on someone else's property but causes you a business interruption, like a supply chain disruption.
Civil authority business interruption insurance protects for the loss of business income and necessary extra expense due to a civil authority prohibiting access to an area. This is usually related to dangerous physical conditions in the area, like a pending flood or after a tornado.
Because business interruption insurance can be different for each business, you should speak to your agent or company for more information.
If my employees stay home out of concern about COVID-19, does my business interruption insurance provide coverage?
Business interruption insurance coverage usually requires something to occur to the physical property. Fear of COVID-19 alone may not be covered by your business interruption insurance.
Because business interruption insurance can be different for each business, you should speak to your agent or company for more information.
I don't understand my business interruption insurance, who can help me?
Because business interruption insurance can be different for each business, you should speak to your agent or company.
Whether you have a general question or want to file a complaint you can get help online at www.insurance.pa.gov or you can contact us at (877)881-6388.
My business interruption insurance coverage does not cover COVID-19, does the Governor's declaration of a State of Emergency affect my business interruption insurance?
No, the Governor's declaration doesn't change the terms of your business interruption insurance.
To help navigate through the potential financial impact of the COVID-19 pandemic, both the state and federal government are offering loans to help offset the revenue lost. Click here to learn more about what is available from the Pennsylvania Department of Community and Economic Development (DCED).
If your business had to close temporarily, consider layoffs, or is financially at-risk for permanent closure you can visit the Rapid Response Assistance to review material created by the Pennsylvania Department of Labor and Industry and DCED.
Where should I go if I have more questions?
Whether you have a general question or want to file a complaint you can get help online at www.insurance.pa.gov or you can contact us at (877)881-6388.