The relevant question regarding Business Interruption/Business Income is not whether or not a Direct Physical Loss occured. The question that should be asked is whether or not the direct physical loss resulted from a Covered Peril.
I believe Mr Badger summed up the situation as well as anybody,
“The normal process is for the policyholder to file a claim, let the insurance company evaluate the coverages under the policy, and then determined whether coverage exists,” said Steven J. Badger, a partner with Zelle LLP.”
Tend to disagree with above comment. Many, many years ago, while working for a major carrier, I had a claim involving a restaurant cut off from road traffic due to flood waters [not a covered peril] over the only roads to the facility. There was no damage to the restaurant and the claim was denied.
I’m having a hard time understanding how business interruption insurance should not apply when our local government has forced our restaurants to close. Call me stupid but isn’t it called “Business Interruption” for a reason. My bad for not purchasing Pandemic Interruption Insurance…oh wait that’s right it didn’t exist.
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The relevant question regarding Business Interruption/Business Income is not whether or not a Direct Physical Loss occured. The question that should be asked is whether or not the direct physical loss resulted from a Covered Peril.
I believe Mr Badger summed up the situation as well as anybody,
“The normal process is for the policyholder to file a claim, let the insurance company evaluate the coverages under the policy, and then determined whether coverage exists,” said Steven J. Badger, a partner with Zelle LLP.”
Tend to disagree with above comment. Many, many years ago, while working for a major carrier, I had a claim involving a restaurant cut off from road traffic due to flood waters [not a covered peril] over the only roads to the facility. There was no damage to the restaurant and the claim was denied.
I’m having a hard time understanding how business interruption insurance should not apply when our local government has forced our restaurants to close. Call me stupid but isn’t it called “Business Interruption” for a reason. My bad for not purchasing Pandemic Interruption Insurance…oh wait that’s right it didn’t exist.
Every policy has exclusions. It has never been the case that everything is covered.
You need to read beyond the coverage heading to determine coverage for any loss. Every coverage is subject to exclusions and limitations.