Small Business Insurance Policies and Coronavirus

Let’s just get this out of the way – there isn’t a business in America that isn’t going to feel the impact of the novel coronavirus responsible for COVID-19. However, you might be able to mitigate some of the financial damage with the right insurance coverage. Let’s get into what coverage you can expect depending on your specific circumstances below.

Business Interruption Resulting from COVID-19

Commercial property insurance might be helpful for businesses whose operations have been interrupted or significantly reduced by mandatory shutdowns used to slow the spread of COVID-19 causing coronavirus. Ideally, it makes up for lost profits and necessary expenses during an emergency. Your business must suffer direct physical loss in order to trigger a commercial property insurance policy. However, it won’t be covered if the policy has an exclusion clause for mold, bacteria, or viruses, even if one of your employees becomes symptomatic on-site.

Events Canceled for Coronavirus Concerns

Companies heavily involved in event planning should immediately review their contracts for any mention of financial penalties or other repercussions for backing out of the deal in the wake of the coronavirus. While force majeure clauses cover many disasters beyond the business’s control (commonly called “Acts of God”), companies in charge of larger events often have event cancellation insurance for added protection. This is exactly what it sounds like and covers expenses and lost income as it relates to canceled events.  It’s especially useful for when a city-wide stay-at-home order has left you unable to fulfill your obligations as coordinator and host.

Bodily Injury Claims

Depending on your policy, your general liability insurance might safeguard your business from claims that its negligence or other behaviors led to someone contracting coronavirus at your place of work. The possibilities of bodily injury resulting from COVID-19 aren’t totally understood yet, but there’s some good evidence for long-lasting damage even after recovery. However, many general liability insurance policies specifically exclude communicable diseases from their coverage, so your business might be out of luck on this front.

Don’t hesitate to reach out to our firm for guidance and corporate support during these trying times. More than ever, our clients are our priority. Call us at (727) 279-5037 or visit our website today.