Business Interruption Insurance: Small Business Savior During The COVID 19 Pandemic?

It is carried in some small business insurance policies, but can business interruption insurance save one’s fledging business in the time of the COVID 19 pandemic?

By: Ringo Bones

If you still don’t have this coverage, it is likely too late to purchase it now as insurance companies usually won’t cover losses for a crisis that’s already underway. However, after COVID 19 blows over, you should look at this small business insurance policy in the future. Some small business insurance policies carry business interruption insurance clauses, either as a stand-alone policy or part of an overall package policy. Depending on the type of policy your business holds, you may have coverage for some types of losses. However, there’s a good chance the coverage might be limited or contain exclusions.

After the Severe Acute Respiratory Syndrome (SARS) outbreak in 2003, many insurance companies have updated their business interruption policies to exclude infectious diseases. Every policy varies, so it depends on the wording of your policy, its exclusions and limitations. Review your policy and talk to your insurance agent to see what, if anything, your policy covers.