Exclusions in Insurance Policies in the Time of COVID-19

As a follow-up to our last post about business interruption insurance, one (more) thing to look for is a virus exclusion in your business interruption coverage. Policies frequently contain exclusions for bacteria and fungi (i.e. mold), but after the SARS epidemic some insurance companies began adding “viruses” or “viral outbreaks” to their exclusions. However, many did not, which may present an opportunity.

Carefully read your insurance policy

It is imperative to carefully review your business’ insurance policy to see if there are any virus exclusions. An exclusion may be in the main policy, but may also be in an endorsement or a rider to a policy.There may be a specific virus exclusion, or there may be only an exclusion for bacteria or fungi. There may also be a specifically identified limited coverage for any of the aforementioned, which may be an expansion from the original policy, or a limitation. There may not be exclusions at all!

If you are unsure whether your business’ insurance policy has a virus exclusion or might otherwise provide coverage for your loss, David Thomas, Esq. and the attorneys at MichieHamlett can assist you in analyzing your policy.