ECONOMY INTERRUPTED: WILL BUSINESS INSURANCE POLICIES COVER COVID-19 LOSSES


This article was authored by Phillip G. Young, Jr., a partner with the law firm of Thompson Burton PLLC, and Leena Shetty, a third year law school student at Vanderbilt School of Law. Questions regarding this article or its contents may be directed to Mr. Young at 615-465-6008 or [email protected] The COVID-19 outbreak and its consequences have pressured state and federal governments to impose restrictions on businesses across industries, resulting in closings and disruptions to the supply chain and product sales. Many businesses have insurance policies covering business interruption, but will those policies cover losses associated with COVID-19? Generally, business interruption policies cover lost revenue, fixed costs, expenses associated with operating from a temporary location if appropriate, and other reasonable expenses that enable the business to continue to operate. The coverage extends until the end of the business interruption period. Business interruption clauses often require “physical loss or damage” resulting […]

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