Client Alert: Your Insurance Checklist for COVID-19 Impacts and Losses

Neal, Gerber & Eisenberg LLP

Neal, Gerber & Eisenberg LLP

As business losses caused by COVID-19 begin to mount, you should carefully review your insurance policies to determine whether you may be covered. 

Are You Covered?

  • Coverage for Economic Losses Due to Inability to Conduct Business Operations. Business interruption insurance, which is typically part of a commercial property insurance policy, covers economic losses resulting from a disruption in business operations. Business interruption insurance often is triggered only by physical damage to covered property. However, the law is unsettled as to whether contamination that renders property unfit for its intended use constitutes physical damage. Moreover, some business interruption insurance is triggered by communicable or infectious disease or when a government authority limits access to the insured’s property.
  • Coverage for Economic Losses Due to Supply Chain Disruptions. Contingent business interruption insurance covers economic losses resulting from a disruption in the business operations of a supplier or customer. As with business interruption insurance, this insurance often is triggered only by physical damage to the supplier’s or customer’s covered property, but there may be exceptions.
  • Coverage for Economic Losses Due to Events Cancellations. Event cancellation insurance covers economic losses resulting from the cancellation, postponement, or relocation of an event for reasons beyond the control of the event organizer. Some, but not all, event cancellation policies contain exclusions for infectious disease.
  • Coverage for Bodily Injury Lawsuits Brought by Third Parties. Commercial general liability insurance covers defense and indemnity costs incurred in connection with lawsuits alleging, among other things, bodily injury.

How to Maximize Potential Insurance Coverage.

  • Notify Your Insurers. Failure to provide timely notice to an insurer could give an insurer a basis to deny your claim. Read notice provisions in your policies carefully. Your broker can help you with providing notice.
  • Mitigate Losses. If you are able to mitigate losses, you should do so, as loss mitigation is required by some insurance policies.
  • Document Losses. Keep careful records of all economic losses and preserve information and documents necessary to calculate your losses.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Neal, Gerber & Eisenberg LLP | Attorney Advertising

Written by:

Neal, Gerber & Eisenberg LLP

Neal, Gerber & Eisenberg LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.