What If Your Insurance Policy Neither Excludes Viruses Nor Specifically Mentions Pandemic Coverage?
We have already reviewed hundreds of commercial coverage policies. Many policies start out in the “coverage possible” category before moving into “coverage likely” or “coverage not likely.” In uncertain times like these, businesses are struggling to get the coverage they need to stay afloat, even when policyholders have done everything they are required to do to comply with policy requirements.
While certain policies do provide coverage either directly or through endorsements, many are silent when in comes to coverage pertaining to viruses and/or communicable diseases. If your policy is silent with regard to virus coverage, it can mean the difference between your businesses being covered or not. While “all-risk” policies cover the insured for losses unless specifically excluded, “named perils” policies are different. Named perils are specific damages or losses that are listed or named within a policy. This means that in the event any of the listed perils damage the insured’s property, the loss will be covered.
Some of the most important policy language to look for in evaluating potential claims includes information about:
- Civil Authority Coverage
- Contingent Business Interruption
- Direct Physical Loss or Damage Requirement