San Diego Business Journal

Businesses seeing a slowdown or interruption in their operations with the emergence of COVID-19 may want to check their insurance coverage.

That is according to a legal alert issued March 16 by Allen Matkins, a law firm with five offices in California.

Business interruption insurance generally helps protect against lost income after a covered peril that affects a business. While covered perils typically include theft, fire, wind, falling objects, and/or lightning, recent policies have been offered to expand coverage to adapt to modern business interruption damages such as cyberattacks.

A careful examination of business insurance policy documents may help a business owner determine if the insurer helps cover losses arising from COVID–19.

To the extent coverage is available to protect against COVID–19 losses, the recent travel bans implemented by the U.S. government, and many local and state governments issuing a state of emergency, are factors that may be the trigger point for which insurance coverage or business income loss coverage may apply. A stronger case for coverage was made since the announcement of a national state of emergency.

Michael Betz, Thomas Gibbs and Scott Leipzig, all partners in Allen Matkins, authored the update.