• Greg Botson

Is loss of income covered from closure due to Coronavirus? It depends...

Over the last few weeks, our lives, our businesses, our community and our world have been impacted by the pandemic of the Coronavirus or COVID-19.

Many businesses have closed or reduced their operations, suffering great financial loss. A common question is: Is Loss of Income covered from closure due to the Coronavirus in my business insurance policy? The answer is "that it depends." It is possible on your commercial property insurance to extend coverage to include coverage for loss of business income due to a closure of your business caused by a covered peril.

However, every policy is unique for every unique business. Each business owner should talk to their agent to discuss if they have Business Income and Extra Expense (Loss of Income coverage) and discuss taking action and filing a claim for every applicable policy, so each claim can be evaluated based on the policy's coverages and the perils covered and not covered.

No matter what the result, It is important to remain financially strong during these next few challenging months. Here are some tips to help protect as much of your profit as possible:

  1. Review your policy with your agent to reduce premiums. There may be certain coverages that can be deleted, reduced or changed to lower your premiums over the next few months.

  2. Determine if your insurance carrier offers any extended grace periods or flexible payment options. Many carriers will allow payments to be deferred for 30 to 60 days to help preserve cash for business owners.

  3. Consider resources available to employees and business owners for lost revenue and wages. Unemployment benefits, SBA loans and Government grant programs may be available for certain businesses and employees.


We have put together some free resources and convenient links to help our customers and the business community be proactive and prepared during the pandemic of the Coronavirus (COVID-19). Feel free to check them out by visiting our Coronavirus Resource Page. Be well and do your part to prevent the spread!

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