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Most standard Business Owners Policies, or BOP’s, offer Business Income (or Interruption) coverage as part of their standard package of coverage. These policies are often built from Insurance Service Office (ISO) forms that include standard policy language that dictact how your policy will react in the event of a claim. Most often your policy‘s Business Income coverage kicks in after a covered loss, such as a fire, or large theft, a wind loss, or water loss. But what happens if your business is forced to closed because of a mandatory quarantine? Your standard BOP won’t provide you protection.
The Insurance Services Office (ISO) has released two optional endorsements for use with commercial property forms to provide limited business interruption coverage for circumstances related to the coronavirus.
Coverage is for the actual loss of business income or necessary extra expenses incurred because the civil authority ordered the closing of the premises or ordered all or part of the premises to be put under quarantine to prevent infection by or spread of a coronavirus, even if the action is taken based on suspicion of a risk of contagion. Because the spread of infectious diseases is unpredictable, coverage is provided even if no disease is yet present; if an area has been struck by the virus, civil authority may order businesses closed in order to minimize exposure to the virus.
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