Is Business Interruption Coverage Immune to the COVID-19 Virus?

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It has already begun to happen: Insureds are inquiring into the possibility of business interruption coverage because they had to close their stores, offices or other commercial premises due to the effects of COVID-19. The question is whether such claims will be compensable under the standard business interruption form. In the attached paper, written by Mark Ian Binsky, Esq. and Glenn A. Jacobson, Esq. of our office, we explain that because the form requires that the insured's loss to be the result of direct physical damage to covered property, business closures due to COVID-19 are unlikely to be covered. But, surprisingly, there are cases that can be interpreted to the contrary. The paper goes on to show why these decisions should not be a sustainable approach in COVID-19 situations. We trust that this analysis is enlightening and helpful with regard to issues arising out of the current COVID-19 emergency. Should you have any questions about such claims, we will be happy to help. You can contact us at: or or by telephone at 212 422-1200.

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