Although currently there is no coverage for business interruption from COVID-19 under most business policies; it is possible that legislation may be passed that will require insurance carriers to provide coverage anyways. We recommend taking the following steps in case there is coverage in the future:
Record any cancellations from customers due to the corona virus that damage your profits. Some things you may want to record are:
Documentation that event was cancelled due to the coronavirus
Continue accounting practices as you normally would.
If you lose any contracts due to the coronavirus, please document all information you can including the information found above in i-vi.
If you are unable to fill a contract or complete a sale due to a necessary third-party in your supply chain being unable to fulfill their obligation, please document all information you can including the information found above in i-vi.
It is with regret that we can’t provide many more details as to how insurance will respond to this crisis. Circumstances are changing rapidly and we are unsure exactly how our local and federal governments will respond, nor what the insurance carriers roles will be during this crisis.
We will continue to keep our policyholders informed as information becomes available.
If you have questions or need more information, please feel free to contact us.