Insurance related to (restaurant) biz

[Sue Doe-Nym]

I am basing this thought on a discussion with my husband, who posed an interesting question: he wondered whether “business interruption insurance” could possibly cover business lost by the deadly Coronavirus. Frankly, it’s nothing I had ever heard of, so do any of you have any ideas? It would certainly be helpful if it counted as a remedy.

[baygo]

Originally Posted by Sue Doe-Nym

I am basing this thought on a discussion with my husband, who posed an interesting question: he wondered whether “business interruption insurance” could possibly cover business lost by the deadly Coronavirus. Frankly, it’s nothing I had ever heard of, so do any of you have any ideas? It would certainly be helpful if it counted as a remedy.

Funny you should ask. I actually have some first-hand experience, directly related. The insurance industry cleverly created some fine print after SARS that Excuses them from liability. One has to get a specific virus binder to reap benefits. Spread the word. It cost me a lot of money to learn that.

[Newbiesaukee]

We have a few business tenants. We got a newsletter today discussing some of these issues. Their opinion was that general business interruption insurance would not apply as these policies usually cover interruption based on physical damage to a property. Clearly this is not definitive but you asked for some info.

[Sue Doe-Nym]

We are retired, but I thought the idea warranted any help the forum members might have. It seemed too good to be possible, and that seems to be the case. Thank you two for your clarification on this.

[joey2665]

I received a letter from my broker today that states viruses are specifically excluded from businesses interruption and civil authority coverage.


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[TheTimeTraveler]

Well, put it this way. If the Virus is covered this year then you can be sure when the Policy renews that "Virus" will not be covered in the future.

This is the same type of thing that folks went thru with "Terrorism" issues, Not a problem prior to 9/11/2001 but after that new Policies were written so that Terrorism issues would not be covered.

[Sue Doe-Nym]

Originally Posted by TheTimeTraveler

Well, put it this way. If the Virus is covered this year then you can be sure when the Policy renews that "Virus" will not be covered in the future.

This is the same type of thing that folks went thru with "Terrorism" issues, Not a problem prior to 9/11/2001 but after that new Policies were written so that Terrorism issues would not be covered.

According to baygo, you can get coverage with a specific rider on your business insurance policy. I am hoping that tonight’s comments from forum posters will be helpful in the future, if not for this crisis.

[DesertDweller]

It is my understanding that most business interruption insurance likely will not cover claims related to COVID-19. The one coverage where there is a great of discussion and potentially litigation on is civil authority coverage when a government prohibits access to your business which is happening in various industries in a bunch of states.

[Sue Doe-Nym]

Originally Posted by DesertDweller

It is my understanding that most business interruption insurance likely will not cover claims related to COVID-19. The one coverage where there is a great of discussion and potentially litigation on is civil authority coverage when a government prohibits access to your business which is happening in various industries in a bunch of states.

In the event where government demands closure of all restaurants, for example, thus preventing the operation of these businesses, perhaps the owner(s) could prevail in a case against their insurance company (ies), demanding coverage ?
Very interesting.

[AC2717]

Agent here:
Viruses are specifically excluded from policy coverage and has been for quite some time (personal and commercial).
Also in order for business Income interruption coverage to be triggered, there has to be a direct physical loss to the property. There is no physical loss to the property to trigger the BII.

ISO (a forms maker for the insurance industry) has created about 2 months or so ago buy back forms for the industry carriers to adopt and file if they want to or they could manuscript their own. Very few if any carriers have, even to the point where ISO has not even assigned a form number or edition date to the forms. Reason being is that the cost to add it to the policy at this particular time would be so expensive the likelihood of an insured purchasing it would be very little. There are some high end carriers and specialty carriers that have a virus buy back but that is on the level of some complicated businesses and specialties

[AC2717]

Originally Posted by Sue Doe-Nym

In the event where government demands closure of all restaurants, for example, thus preventing the operation of these businesses, perhaps the owner(s) could prevail in a case against their insurance company (ies), demanding coverage ?
Very interesting.

Hi, with a Govt shutdown that too is in most cases an exclusion under Civil Authority

[AC2717]

Originally Posted by Sue Doe-Nym

According to baygo, you can get coverage with a specific rider on your business insurance policy. I am hoping that tonight’s comments from forum posters will be helpful in the future, if not for this crisis.

Terrorism was never covered prior to 9/11, in fact after 9/11 it was a federal mandate that terrorism coverage be offered and rated for commercial insurance customers. The customers have the options to purchase or not to purchase it. (the price is very minimal in relation to rest of the premium)

Terrorism is also now automatically included in most states on Workers Compensation. in MA for example, it is included and rated for.

[upthesaukee]

Truly, the only way to know for sure is for the business owner to carefully read their insurance policy, and to verify coverage (or lack thereof) with their insurance agent. As Baygo said, you have to find out not only what is covered, but what is not.

When I worked as an underwriter, I learned that an insurance policy was written to define coverage, define what's not covered (called exceptions), define what in an exception may actually be covered (an exception to an exception), etc.. Most importantly, always remember that insurance policies are not written by insurance company personnel, but rather by lawyers.

Dave

[winterh]

I learned the other day that the virus is excluded in my business interruption insurance. It was in the fine print which I must admit I never read as I never imagined we would be where we are today. My agent tells me that there is talk of the govt backing the insurance companies and having them cover this. They want to get money to small businesses and they look at this as a quicker, less bureaucratic way to do so. The insurance companies have the infrastructure in place to get it out quicker. I understand the no bailout/limited govt crowd and generally come down on that side. Flip side of that is millions losing their job and bankruptcies like we have never seen. I don't even pretend to know what the right answer is.

[Doobs41378]

I use to watch a show about the Sturgis bike rally and the owner of the Full Throttle Saloon would buy "rain insurance" if it rained over a certain amount on any day the policy paid out. I had never heard of that before. I know it doesn't directly relate to this topic but it was basically his business interruption insurance.

[AC2717]

you can basically buy insurance on anything you want only two things need to happen:
you need to find a carrier or group to insure what you want
and you need to pay them what they want

Lloyd's of London is one of those companies

[JEEPONLY]

https://havenlife.com/blog/craziest-...lloyds-london/