With the coronavirus pandemic impacting operations of all Connecticut companies, many employers are taking a closer look at their business interruption insurance policies. 

Business interruption insurance is coverage that replaces income lost in the event operations are halted for some reason, such as a fire or a natural disaster. 

It also covers operating expenses, a move to a temporary location if necessary, payroll, taxes, and loan payments.

As employers continue to navigate this uncharted territory, there has been concern as to whether the coronavirus pandemic is an event covered by business interruption insurance. 

State Insurance Department

The Connecticut Insurance Department has provided information, but has not released guidance on the issue. 

The department is advising employers to review their business interruption insurance policies.

Without regulatory directive, coverage will be exclusively contingent on the contractual language of each employer's policy. 

If there are issues with a claim, the department can assist employers with claim denials through its consumer affairs process.

Complaints or inquiries can be sent through email, via the department’s website, or through the consumer helpline (800.203.3447 or 860.297.3900).

Before contacting CID, make sure to have the following information available: the name of your insurance company, policy number, and claim denial reasons.

State Action

The New Jersey state legislature has proposed a bill that would mandate coverage for business interruption insurance claims resulting from the coronavirus.

Connecticut small businesses are also eligible for U.S. Small Business Administration disaster relief loans and the state is preparing additional programs expected to be released next week.

While the Federal Insurance Office and the U.S. Congress have also remained silent on the issues, some states are taking action. 

CBIA will continue to monitor regulatory and legislative efforts surrounding business interruption insurance as this unprecedented situation develops.

For more information, contact CBIA's Michelle Rakebrand (203.592.7532) | @MRakebrand