The COVID-19 pandemic is evolving hourly. At present, Ontario is
in a state of emergency, and it is likely that most Provinces will
follow suit. Extreme “social distancing” measures have
taken hold nation-wide, and this has already caused dramatic
consequences to businesses in almost every sector.
Some of our clients have been asking whether they will be
entitled to insurance coverage for business interruption and
related economic losses resulting from the COVID-19 climate. This
is a nuanced and complex question, and we highlight some key
considerations below.
Considerations for Potential Insurance Coverage
Whether or not your business will be entitled to insurance
coverage for COVID-19 related losses will depend on an analysis of
the specific terms and conditions of your policy, as well as its
riders/endorsements. It will also depend on an analysis of the
facts surrounding the circumstances of the loss, and how these
apply to the policy wording.
