Business Income, COVID-19, and New Jersey State Intervention

AS COVID-19 spreads throughout the United States, individual states are taking various steps to protect citizens from the spread of the virus. Some governors have closed schools, restaurants, and bars and others are contemplating doing the same. Now some states are adding to the closures gyms, fitness centers, movie theaters, and others. Many states are requiring people to not congregate in groups of more than fifty people, in order to limit the chances of passing the virus to others. 

Whenever there is a catastrophe of some sort, people naturally look to insurance. One of the significant coverages for commercial property policies is business income/interruption, which provides coverage for loss of business income due to damage to the insured property or to neighboring property that causes local authorities to restrict access to the insured property. With businesses being told to close, business owners are naturally turning to their insurance coverage. Unfortunately, they are finding out that such coverage applies only when property damage has occurred, either to their property or neighboring property, even if the closure is the result of actions of civil authority. This puts an extensive hardship on many businesses, particularly smaller businesses.