Some insurance policies cover losses due to COVID-19.
If you have business interruption insurance coverage in place, the question of whether or not your losses will be covered depends on the policy itself.
How long you’re covered depends on your policy.
The period of coverage may not necessarily start from when your business closed operations. There may be a brief waiting period before the policy is put into place. How long the coverage will last can also vary. Some policies have a set number of days, while others last until a civil order has been granted to resume operations again.
What’s covered is also policy specific.
Your business may recover the total reduction in net income and normal operating expenses but must be able to prove these losses. Any/all of the following documents will be helpful.
- past income tax records
- financial statements and records for the previous years
- financial statements which depict the same period for previous years
- sales projections or patterns
- itemized business expenses including payroll
Adapt your business to minimize losses.
Despite having insurance, businesses have an obligation to mitigate or lessen their losses to the best of their capability. For example, food establishments that are no longer allowed to serve dine-in patrons, may opt to open a take-out only or delivery service. Other types of business can see if they are able to conduct their trade online.