Business interruption coverage | UNIVISTA INSURANCE

Business interruption coverage

Business interruption coverage: the key to normalcy. Business – or commercial – interruption coverage has been on the lips of many entrepreneurs who suffered mandatory shutdowns when the pandemic broke out last year. This coverage helps small companies to protect themselves against monetary losses due to the mandatory suspension of their activities for causes included in the policy, among which are the closure of the business derived from an order issued by a civil or military authority.
Business Interruption coverage is generally purchased as part of the BOP business owner policy, paying an additional premium, and must cover losses arising from closings, whether it be rent, employee salary, taxes, or maintenance. repayment of the loan owed by the company.
Typically, business interruption coverage does not cover damage caused by floods and earthquakes. Although companies can purchase additional coverage to protect themselves from such events.
Also, many insurers exclude from their contracts the loss of income derived from closures related to viral outbreaks or pandemics.
That is why in eleven states, among which Florida is not found, legislators introduced bills proposing that insurers pay retrospectively to businesses that had this coverage the losses due to closures due to COVID.
If you have a business in Florida and have business interruption coverage that does not exclude events related to viral outbreaks or pandemics, you can claim from your insurance company for the period that it was mandatorily closed. If the lawsuit is successful, they can replace the profits that would have been generated if the pandemic had not occurred. For this, insurers rely on the data that appear in the financial status of your company before the pandemic.
As you can see, businesses with adequate business insurance can profit from even the worst tragedies. Business interruption coverage: the key to normalcy.
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