Businesses continue to be more and more impacted by the coronavirus. This is certainly true for our Dentists! As business services are limited or even shut down, many customers are asking how business interruption may or may not apply. We have reviewed many insurance policies and sadly, the vast majority of policies do not cover business interruption caused by a pandemic. This is primarily due to the lack of physical damage to the property resulting from the pandemic. A second problem is a standard exclusion in many forms for losses caused by a virus or bacteria.
All this being said, if you are suffering a loss of business income and wish to turn in a claim, we would recommend that you do so. Once we see the specific reason behind a possible denial of coverage, we can see if there is another possible course of action to attempt triggering coverage. We will report to you that as of now, the many claims we have filed on behalf of our clients have resulted in denials.
You should also be aware that there is a possibility of some sort of a government backstop for losses due to business interruption. We are monitoring this and are hopeful that a solution is developed, approved and deployed.
Please note that whether you file a claim or choose not to do so, keep thorough records of your loss. This documentation will be needed if you decide to file a claim and may also be needed if indeed the government lands on a solution.
TDA Financial Services Insurance Program