{"id":5095,"date":"2020-06-02T14:04:25","date_gmt":"2020-06-02T19:04:25","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/liability-and-insurance\/does-business-insurance-cover-losses-from-covid-19.html"},"modified":"2024-05-23T02:19:15","modified_gmt":"2024-05-23T07:19:15","slug":"does-business-insurance-cover-losses-from-covid-19","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/liability-and-insurance\/does-business-insurance-cover-losses-from-covid-19.html","title":{"rendered":"Does Business Insurance Cover Losses From a Forced Closure?"},"content":{"rendered":"\n
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Does Business Insurance Cover Losses From a Forced Closure?<\/h1>\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Susan Mills Richmond, Esq.<\/a>\n | Last updated\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

As business owners discovered during the 2020 pandemic, a business shutdown can be a logistical nightmare. You may need to close your doors, but you still have operating expenses, mortgage or lease payments, and employee wages. If a forced closure drags on, lost income becomes an issue.<\/p>\r\n

Many small businesses closed their doors permanently because of the pandemic. Others managed to survive thanks to government bailouts and loans.<\/p>\r\n

All businesses, large and small, reevaluated the need for business interruption insurance coverage. This type of insurance covers all forced closures and emergency shutdowns. The requirements and exclusions are strict. Business owners must consult an attorney before signing any forced closure coverage, or they may be worse off than before.<\/p>\r\n

This article reviews business interruption insurance and forced closure coverage. For information about other types of commercial insurance, visit FindLaw’s Business Liability and Insurance<\/a> page.<\/p>\r\n

What Is Business Interruption Insurance?<\/h2>\r\n

Most companies have a standard business owner’s policy<\/a> (BOP). This common policy includes general liability insurance, property insurance, and business interruption coverage. This package covers most issues businesses will likely experience during a typical closure.<\/p>\r\n

In addition to property damage and any other liabilities, business interruption insurance covers:<\/p>\r\n