As the novel coronavirus continues to impact business operations well into its ninth month, the question of whether companies will receive coverage via business interruption policies remains in the hot seat.
For a BI policy to kick in, a business must sustain some type of physical loss that has impeded operations. Many insurers are denying such claims, because shutdown mandates enacted by state and federal law do not fit this definition.
However, that hasn’t stopped businesses from trying.
In New Jersey, for example, an optometry practice filed suit against its insurer after its BI claim was denied. Optical Services USA believed that its business interruption policy would kick in to help offset the costs lost during shutdowns due to the virus.
Its insurer said no dice. But, when the suit made its way to the Superior Court of New Jersey, the judge ruled in favor of the insured.