A question we’re starting to see appear is if business interruption insurance applies to a virus outbreak. The National Law Review has a thoughtful article on this topic titled: “Coronavirus: Factors for the Insurance Industry to Consider − Part 1 Business Interruption.” The short answer is, probably not, but every policy is written differently so it’s important to read the actual form. 

Some reasons why it is not covered: 

  • Many policies require a direct physical loss
  • Some policies have virus specific exclusions
  • Many policies have exclusions for viruses or bacteria

There may be endorsements or separate policies that offer coverage. 

Another possible place to find coverage is Civil Authority coverage, but again many of these are triggered by a direct physical loss and/or have exclusions for biological events. 

Bottom line, if you have questions, give our specialists a call to discuss your case. 

About PDI

PDI is an Indianapolis-based wholesale brokerage firm with a national network that includes thousands of insurance agents, brokers, architects, engineers and contractors in all 50 states. Since PDI’s beginning in 1980, we’ve handled a single line of coverage: errors & omissions (E&O) for design professionals. Contact Us today for a review of your design client’s insurance program.