The Coronavirus Pandemic has brought with it another element of complexity for businesses: civil authority. Civil authority is when the government limits access to a business premise such as the executive order recently implemented. Many owners are not aware that they may have civil authority coverage which provides businesses with reimbursement coverage for lost income when a local, state or federal government entity denies access to covered property due to a natural disaster or life-threatening event, such as Coronavirus. Some recent examples include:
-Mayor Bill de Blasio ordering all restaurants in the city to only offer takeout or delivery due to the Coronavirus outbreak.
-Governor Cuomo is ordering all venues in the state of NY seating 500 people or less will need to reduce capacity by 50 percent — including restaurants and bars.
Civil Authority Triggers Business Interruption Coverage
Public safety threats such as Coronavirus pose dire financial implications for businesses such as restaurants, movie theatres, music venues, catering halls, sports arenas, museums, and retail stores. Implementation of the Civil Authority affects operations, resulting in a loss of potential income for an extended period of time. This is when business interruption coverage is key as this clause replaces income lost in the event that business is not operational due to life-threatening events such as Coronavirus.
Loss of income must be caused by the civil authority’s order and cannot be caused by only the life-threatening event. An order to evacuate the property must be present. The Civil Authority clause contains time limits which can vary but typically are capped from one week to 30 days. Before a claim can be triggered, there is often a 72-hour waiting period. As you can see, there are many complex angles that must be assessed when managing a Civil Authority property insurance claim. Consider adding a public adjuster to your emergency response tools.
Add a Public Adjuster to your Emergency Contact List
United Public Adjusters & Appraisers Inc. has the experience to sift through policy language and decipher coverage. We closely analyze whether existing insurance policies potentially provide coverage for the losses. Only an expert such as a public adjuster can position language to your benefit. UPA will dissect your policy for all possible angles to attain coverage and to minimize the Coronavirus business impact. Our property insurance experts have years of experience in policy language interpretation. Contact us today for a complimentary claim review.