Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Insurance property policies generally have a few things in common; one is that they provide coverage for some form of physical damage; it may be listed as “direct physical damage”, “direct physical loss or damage”, “loss or damage” caused by a particular peril, “direct physical loss to property” or similar phrasing. It is clear that actual physical damage must occur. But what exactly is damage? The policies do not include damage as a defined term. While it seems straightforward, circumstances arise, such as COVID-19, that bring the question to the forefront. 

Currently COVID-19 has swept the world, and is now working its way through the United States where governors and other officials are ordering closings of schools, restaurants, bars, gyms, movie theaters, and other businesses. Many small businesses will struggle to survive without their normal cash flow. Therefore, they look to their insurance policy for coverage. But what is physical damage? 

This premium content is locked for
FC&S Expert Coverage Interpretation subscribers.

Enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.

  • Quality content from industry experts with over 60 years insurance experience, combined
  • Customizable alerts of changes in relevant policies and trends
  • Search and navigate Q&As to find answers to your specific questions
  • Filter by article, discussion, analysis and more to find the exact information you’re looking for
  • Continually updated to bring you the latest reports, trending topics, and coverage analysis

Already have an account?
For enterprise-wide or corporate access, please contact our Sales Department at 1-800-543-0874 or email [email protected].

FC&S Editors


Get Answers Directly From the FC&S Experts

Submit your coverage interpretation question to the editors of FC&S for quick and reliable information.

Question of the Week

Insurance Coverage Q&A: Date of Loss or Date of Assessment ›

When loss assessment language refers to an event, is the event the date of loss, or the date of the assessment?

Question of the Week Archive ›

Copyright © 2024 ALM Global, LLC. All Rights Reserved.