Question:

Does my Business Interruption Coverage provide for loss of income as a result of Provincial and Municipal closures caused by COVID-19?

Great question. You can be assured we have looked into your business interruption coverage and all other income replacement coverages on your policy.

Insurance carriers provide business interruption coverage that follows most of the same triggers available to your business property and building. In other words, if you suffer a loss in income as a result of a fire, wind, or vandalism, business interruption coverage would apply. Although the Provincial and Municipal closures caused by COVID-19 have resulted in financial hardship for your business, it did not cause any physical damage to the building or property and that is what is required for the business interruption to be triggered.

While policy wording doesn't talk about Pandemics, it is standard for all policies to outright exclude these massive losses such as Acts of War, Terrorism, and Nuclear Events. We wish we could tell you that the policy would respond; unfortunately, the Business Interruption coverage was not written to provide for this type of emergency and financial relief.


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