Most commercial insurance policies cover loss of business income due to a covered peril.  Common examples of perils that can impact business income are fire, lightning, windstorm, etc.


Insurance professionals have been receiving several phone calls from their business clients asking if their policy will cover the loss of business income due to the outbreak of the novel COVID-19 Coronavirus.  In order for a commercial insurance policy to cover a loss of business income there must be damage to property which leads the business to shut its doors.


In the case of the COVID-19 Coronavirus, there is no damage to property as a result of the virus and there is a specific property exclusion that applies to viruses.


Sadly, the short answer to this frantic question is there is no business income coverage under the commercial insurance policy.  Federal and State Government Officials have begun deliberating legislation that would aid businesses impacted by this viral outbreak.  It is important for business owners to stay informed on these topics and seek the resources as they become available.