Dear NGL Insurance Clients:
We want to begin by wishing all of you our best wishes of good health for everyone and you families and loved ones. The United States of America as well as the rest of the world are facing unprecedented times, medically, personally, politically and in business. Communication and patience by all will be key to our success in overcoming this crisis.
With that in mind, NGL has received a number of inquiries from business owners regarding possible insurance coverage under the “Business Interruption” portion of your insurance policies that contain that particular insurance coverage (not all policies carry BI) as a result of loss of business from the Covid-19 crisis.
Unfortunately the short answer for nearly all Business Owners is that there is no coverage in this situation. Business Interruption Insurance covers “the loss of business due to direct physical damage to the premises of the covered business” and then, only if the physical damage was caused by a covered peril (typically fire, wind, collapse, pipe break, etc.). In addition, nearly all policies exclude coverage for viruses, war and epidemics.
Further, while some policies provide coverage for “Civil Authority prohibiting access to your business”, that provision is in place due to physical damage or destruction elsewhere.
We truly understand and empathize with all of you, our clients, who are also our close friends. As small business owners ourselves, we share the same concerns for our families and our employees and indeed our country.
We wish you all the best, please stay healthy and of course, do not hesitate to contact us should you have any questions.