During the pandemic panic, one of the most common question received by the VU was, “Does the Business Income policy cover government-mandated shutdowns?” The answer then and the answer now is, no, the business income policy was not designed to cover these types of situations. That’s the short answer, but you probably need the longer…
Business income is the most undersold property coverage likely because it is the most misunderstood and scary. In reality, BI is quite once these basic concepts are understood.
Learn how to complete the business income worksheet (CP 15 15), a worksheet that has frightened insurance practitioners for decades.
An agent asks: Several of my clients’ have suffered damage as a result of the riots in the area. However, prior to the riots they were already closed as a result of state-wide COVID-19 closures. How will the business income policy respond? Will loss payment be affected by the previous closure order?
Company Bulletin 2020-15 issued June 8, 2020, by the Illinois Department of Insurance (IDOI) threw key provisions of the business income policy out the proverbial window. This article examines how the IDOI addressed the recent riots and how the department expects insurance carriers to respond.
Some plaintiff attorneys are almost giddy over the fact that several jurisdictions used the term “property damage” in their respective emergency declarations to justify closing “non-essential” businesses. These attorneys are hopeful that such wording gives them the ability to trigger a business income claim.
Plaintiff attorneys think they have figured out a way to squeeze coverage from the business income policy. It’s an interesting attempt, but it’s still a “no go.” Hopefully they will keep on trying because it makes for great entertainment.
There doesn’t need to be a “pandemic” exclusion in the business income policy. The absence of the word or an exclusion containing the word does not change the facts of coverage.
Even though COVID risks have lessened, this article is still a great primer on extended cusiness income coverage. Following a business-closing loss, insureds suffer two income loss periods. Obviously, income is lost during the period the business is shut down or slowed down because of the property loss. But less obvious is the fact that…
Before any insurance policy responds to a claim, the loss must first meet all the requirements of the insuring agreement. The insuring agreement is the broadest the coverage will ever be. If the loss is excluded by the insuring agreement, there is no coverage.