The advice I have been giving my clients is to begin amending their business plans right now with the expectation that they will not be receiving any business income coverage. As well I feel it is wise for business owners to also begin gathering data regarding lost sales/bookings, returned funds and start compiling comparative data for submission in a potential claim. By doing both of these things they will be as prepared as possible going forward and ready to submit a claim if it comes to that. It is going to take some time for the insurance industry & the courts to work this topic through the system and allow precedents to be established. If down the road it turns out that the policy is able to afford coverage then it will be all the better for those businesses that were prepared.
For those who are interested in learning more on this topic and the current discussion, they can investigate the following articles. The first article is the least technical discussion of the three. The final two articles go fairly deep into the contract language and contain a lot of insurance jargon which may be more difficult to digest for those not accustomed to this field.
Does my business insurance cover the Coronavirus?
COVID-19 and Business Interruption
Insurance Coverage in the Time of Coronavirus
Article written by: Andrew Johnson
Insurance Agent & Owner
Frankfort Insurance Agency, Inc., Frankfort, Michigan