BUSINESS INTERRUPTION CLAIMS & COVID-19
The news on all networks have been filled with information on the now declared pandemic of the Coronavirus or COVID-19. It is possible for your commercial property insurance to extend coverage to include coverage for loss of business income due to a closure of your business caused by a covered peril. A communicable disease like the Coronavirus may not be a covered peril, but you should not allow that assumption to keep you from taking action.
First, it is critically important to report all claims and potential claims to EACH AND EVERY CARRIER whose policy might apply to your loss. This includes CGL, Personal lines, Umbrella, Excess, Workers Compensation, Specialty and any other policy you may have.
Second, you need to determine whether you purchased business income coverage. If you don’t find the coverage in your policy description, be sure to call our office.
Third, if your business closes due to the Coronavirus, it is important to know (again) that communicable diseases typically are not a covered peril that would give rise to insurance benefits for loss of income. It doesn’t matter if the loss of income is just from a downturn of business due to the loss of many customers or the actual closure of your business. However, you should still report all claims and potential claims.
As always, we are accessible to address any questions or concerns you may have. However,
if you are ready to file a claim, we urge you to take advantage of the online property claim
form we’ve setup on our website that is instantly sent to your Account Executive upon
completion.
We remain committed to delivering the best possible service we can to our customers and
will continue to provide updates that may impact you.
Stay healthy and stay safe.
SAMPLE LIST OF DOCUMENTATION FOR BUSINESS INTERRUPTION CLAIMS
Good claim documentation is one of the key factors to claim settlement. AWS Insurance has compiled the below sample list to help you get a head start on your Business Income/Interruption Claim.
• Description of physical loss or damage to premise(s)
• Time and origin of the property damage/destruction
• Monthly Profit and Loss Statements
• Monthly and Daily Production Reports
• Monthly Inventory
• Monthly Cost Accounting Reports
• Invoices and Purchase Orders
• Accounting records
• Payroll records and other Important Documents
• Government Notices of Shutdowns
• Historical Production and Sales Records
• Lost Sales Projection Model
• List of Expected Expenses
• Receipts
• Annual Budgets and Forecasts
• Profit and Loss Statements
• Tenant Leases