Does It Matter if My Business Interruption Insurance Policy Contains a Viral Exclusion?

Business owners across the United States have turned to their insurance companies for coverage under their business interruption insurance. However, many business owners’ claims are getting denied due to their insurers’ stance that they do not cover business losses caused by microorganisms such as the coronavirus.

Below, we discuss what to do if your business interruption insurance policy contains a viral exclusion.

Understanding Business Interruption Coverage

Most business owners across the country purchased business interruption insurance because they believed it would pay for losses caused by natural disasters or forced business closures.

While many would think that a global pandemic would qualify as a natural disaster, most insurance companies do not see it the same way. In fact, in the wake of the 2003 SARS outbreak, many insurers explicitly excluded damages caused by microorganisms from their policies.

If your business interruption insurance policy contains such an exclusion, it’s important to keep in mind that these policies contain nuanced language that can be open to interpretation. For example, many business interruption insurance policies exclude damages caused by bacteria or viruses—not both.

If, however, your policy does contain an exclusion for viruses specifically, remember that the language with which this policy is worded can still be ambiguous. With “all-risk” insurance policies, for example, the insurer must specifically state any risk it wants to exclude. If the specific risk is not excluded, it is assumed that it is included in the policy and will be covered.

In this case, an experienced attorney may be able to work with your insurer to get your business interruption claim approved.

Did Your Business Interruption Claim Get Denied? Contact Us Today

At The Ammons Law Firm LLP, we understand the devastating financial consequences the COVID-19 pandemic has on business owners. That’s why our team is offering a free, “no-risk” review of insurance policies for businesses that have been closed during the COVID-19 pandemic. Rejection of a claim by the insurance company may not be the final answer.

We’re here to help you. Contact The Ammons Law Firm LLP today at (281) 801-5617 to schedule your free review.