Business Interruption Insurance During COVID-19

Recouping business losses during COVID-19 pandemic

Since the outset of the Covid-19 pandemic and the resulting closures of non-essential services across Canada, many businesses have sought to access their business interruption insurance to recoup some of their losses.

Most business interruption policies require the insured to prove direct physical loss or damage to their premises in order to access their insurance coverage. Unfortunately, that is difficult to show given that the pandemic is widespread and most closures were ordered by public health authorities as a precautionary measure.

Business Interruption Insurance Denied

However, there are businesses (such as some dental offices) who have additional endorsements under their insurance policies that specifically protect them in the event of business interruption due to infectious diseases and/or pandemics. Despite this additional protection for which they paid premiums for, some insurers are refusing to budge and make excuses for why they will not honour their obligations when it is clear that payment for losses are due under their policies. This is an injustice and business owners who have these additional protective endorsements and who face such refusals should seek legal advice immediately.

Check your policy

Insurers must comply with their obligations under the policies they underwrite. After all, they have been paid premiums, often for many years, for exactly this kind of an eventuality.

All business owners in British Columbia are advised to check their policies or contact their insurance brokers to find out if they have such endorsements in their policies that may entitle them to coverage during this difficult time.