COVID-19 Damage Insurance Claims: Are They Possible?

Business insurance has saved many companies from damages and other harsh expenses due to various instances of bad luck. Nowadays, profit losses are heavy in many areas of the United States because of the severe impact of COVID-19. Florida was significantly affected by the economic downturn of 2020, as lockdowns and fears of the virus have forced many to stay at home and mass business shutdowns. 

In 2020, many fan-favorite hotels, restaurants, fitness centers, and other leisure spots have taken a hit, and some are even long-gone after decades of operation. Knowing how hard COVID-19 has impacted many industries shows that investing in the right tools to stay afloat is essential to survival. Many are unaware of how insurance policies come in various styles, and some can even help cover financial losses due to the pandemic. 

Business Income Coverage for COVID-19

Apex Insurance agents have a few tips about overall insurance policies and general liability parameters. Reviewing the business policy linked to your company is a great way to find out if financial compensation is possible. There might be some premiums that protect from suspensions of operations, which can be claimed in any event that the lockdowns have claimed precious time and resources spent. 

Additionally, some properties have been vandalized or defaced due to the nationwide turmoil, making it a point to claim damages to properties. Premiums purchased have some instances that can be considered as covered as a cause of losses in functionality and operations. 

Business Income Coverage is receivable in two ways. The first is if direct physical losses have caused the suspension of running due to damages to stores, and the second is if a covered cause of loss has resulted in damage. 

What About the Virus?

A virus might not seem to create physical damages to stores because these are microscopic organisms. Still, the operational definition of material loss is “any impact on a property that prevents it from being used for the purpose it was intended to be used.” While a virus is not a visible entity that creates debilitating damage physically, it certainly contaminates areas, which impacts business operations. 

While it might be a long shot for some insurance providers, you can review their respective policies to see if your business is entitled to compensation for damages to sales. Many stores and small enterprises were heavily affected by the deadly nature of the virus, and this coupled with nationwide unrest that has caused tons of damage to local economies. 

Check Your Policy Inclusions and Exclusions

Some businesses might have specific premiums or policy items with “policy exclusions,” and these attempt to limit coverage for circumstances like viruses, bacteria, and others. Not all policies will include this in the mix, but it is good to check in the first place, as these exclusions will be damaging to any claims you attempt to make for your business. Knowing what policy premiums are purchased will help determine general liability aspects and other coverage items that can assist with fatal blows to companies.  


While viruses are not precisely visible entities that cause debilitating damage to businesses in terms of physical operations, fears of the virus’s contamination are widespread. This fear has caused people to do fewer transactions physically and in-store, which can be argued to be physical damage due to infectious diseases. 

Apex Insurance Agency is a premium insurance agency in Delray Beach, Florida. We offer plans and premiums for auto, home, life, and business insurance to relieve daily life tension. Contact us to learn more about our insurance policies that can meet all your needs. 

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