Generally, insurance policies for business do not cover business interruption or supply disruption caused by a pandemic like COVID-19. Property insurance is designed to protect the physical assets of a business against loss or damage from a range of causes, whether specific perils named in the policy or comprehensive. Beyond this, some organizations may have purchased specialized business interruption coverage – generally an add-on to an existing business insurance policy that covers continuing expenses or replaces lost profits in the event of a business temporarily needing to shut down. With these policies, a significant issue is defining the period of indemnity or restoration – policies will pay business income loss through to the point that the business is restored or when the coverage expires – usually 12 months from the beginning of the interruption.
For more information, see the information on the IBC’s website.