COVID-19 – Update – Practical Considerations For Commercial Leases

Am I insured?

Most businesses are not covered for interruptions caused by COVID-19.  Most policies provide coverage for business interruptions by way of insurance over property and casualty damage.  The COVID-19 pandemic is not likely to trigger coverage under these policies in light of the absence of any damage to property (like one would see in a fire or flood).  Accordingly, absent any additional coverage most businesses will find that their insurance providers are unable to assist as a result of the current pandemic.

This is, however, a continually evolving situation, so policyholders are wise to review their specific policies and keep abreast of the ongoing developments. This includes communicating with your insurer, and keeping informed of the positions of the government and the courts in respect of whether losses arising out of COVID-19 are insurable and covered.