Understandably, in times like these, businesses are focused on the well-being of their employees and mitigating their losses.
Based on experience, now is also the time to carefully consider and document business interruption and supply-chain losses for insurance claims. Disputes often occur regarding necessary documentation to demonstrate these losses which can be minimized if businesses act sooner rather than later.
Insurance assets exist for certain losses resulting from COVID-19. The availability of insurance will depend on the provisions of the insurance policy and the facts of the case... Business interruption and supply chain coverages, including contingent business interruption, generally require a showing of physical loss or damage that gave rise to the loss. The coverages also may be triggered by local, state, or federal government orders or other actions of “civil authorities.” Additionally, some or all of an insured’s policies for its domestic or international properties may provide extensions for “notifiable disease” coverage. Although the ramifications of COVID-19 are causing the insured’s losses, the question will be whether the conditions for coverage have been established to trigger the coverage.