The recent pandemic has brought to the forefront business insurance coverage for the shutdowns – what is known as business interruption coverage. That is, many commercial insurance policies pay the insured for its “loss profits” and “extra expenses” resulting from the time they are unable to open their doors for some period of time — usually up to 12 months provided losses are documented — because of various events. In this case there has been a government order to close or “shutdown” businesses and cease operating. The reason:? There is a pandemic – a virus is in the “air” that threatens the human population. The question is: Is this a business interruption that is covered as a compensable loss under the insured’s commercial insurance policy?
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