COVID-19: Does Your Business Insurance Policy Cover Your Losses During the COVID–19 Shutdown? Your Insurance Company May Tell You No, But That May Not Be the Truth

By: Matthew H. Fry, Esquire

As the stay-at-home orders and business shutdowns continue, you hear many stories from small businesses about being unable to take advantage of the stimulus funds or loans to keep their businesses afloat.  Many businesses that have comprehensive insurance have also asked their insurance agents and brokers about filing a claim under their policies for business interruption coverage.  To date, insurance claims seeking business interruption coverage for the COVID-19- related closures have been denied, but those denials are currently being challenged across the nation, including Pennsylvania.

Insurance companies are denying these claims because the policies issued for business interruption coverage typically only pay where there is “property damage” to your business.  Examples of common claims for property damage include damage from a weather event, a broken pipe, or a car running into your building.  With business interruption insurance you can recover your lost profits during the time your business is closed for repairs.  Insurance companies claim that a deadly virus, and the resulting requirement to shut down, is not “property damage” to be covered under their policies.

However, based on announcements from various government officials and medical professionals, the contamination of property appears to be the root of the closures.  It is for that reason that court challenges to these insurance denials are claiming that the COVID-19 virus, and the resulting spread and contamination, actually is “property damage” that should be covered under these business policies. 

Lawyers, including the attorneys at the Law Firm of DiOrio & Sereni, LLP, are teaming up with other lawyers from all over Pennsylvania to challenge the insurance companies’ denial of these lost business income claims.  We’re here to help you fight for what’s right.

The Law Firm of DiOrio & Sereni, LLP is a full-service law firm in Media, Delaware County, Pennsylvania. We strive to help people, businesses and institutions throughout Southeastern Pennsylvania solve legal problems – and even prevent legal problems before they occur.  To learn more about the full range of our specific practice areas, please visit or contact Matthew H. Fry, Esquire at 610-565-5700 or at [email protected]

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