Most “business interruption” insurance policies require that there be a physical loss in order to trigger coverage. However, many “commercial property insurance policies” provide coverage for business income losses sustained when a “civil authority” prohibits or impairs access to the policyholder’s premises. Depending upon its specific wording, a policy’s “civil authority” coverage may or may not require that the access restriction result from “physical loss” by a covered cause of loss and, if so, often does not require that the “physical loss” occur to the policyholder’s own property. Accordingly, in the event that a federal, state, or local governmental authority limits access to or from areas where active transmission of an infectious disease has been identified, “civil authority” coverage may respond with insurance for the attendant income losses of affected businesses.
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Valla & Associates Inc., P.C. provides high-quality, responsive legal services to its international business clientele from offices in San Francisco, New York, Los Angeles and Milan. The Firm’s lawyers and paralegals are fluent in English, Italian, German, Spanish, and Cantonese.