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What Small Business Owners Need To Know About Business Insurance During COVID-19
Posted by Legacy Insurance Group on
What Does My Business Insurance Cover?
Your Business Owners Policy (BOP) cover Loss Of Income That A Business Suffers After A Disaster caused by Fire, weather-related event or other event that interrupts operations due to Physical Damage. BOP Covers Operating Expenses, Loss of Income, Payroll, Taxes, Loan Payments & Temporary re-location.
As of 2020, BOP does NOT provide coverage for damage caused directly/indirectly by airborne bacteria or virus. Technically, shutdown caused by COVID-19 is NOT caused by physical damage.
What Does The Future Of Business Insurance Entail For Me?
It is likely that coverage for future pandemics could be covered once Actuaries figure out how to use data to price coverage. Prior To 9/11, Coverage Arising From “Acts of War or Terror” were Excluded. Many insurers still paid out Billions of dollars in Property Damage to affected insureds. Today most BOPs give the business owner the option to accept/reject Terrorism coverage. The most impacted businesses may bring claims to insurers and have their State courts re-interpret coverage in their favor.
The First known bill was proposed in NJ on March 19th which seeks to create business interruption coverage for COVID-19. Many businesses did not have a choice of closure. Small businesses are losing money due to forced closures and are not able to provide limited services such as carry-out or delivery.
How Do I Learn More About Business Insurance?
Contact us At 703-430-1200 to find out how we can support your small business or help protect you and your family with Auto, Home, Business & Life Insurance