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Business interruption insurance: pandemic claims
Online Published Date : 22 September 2020 | Appeared in issue: Vol 32 No 9 - 22 September 2020
The insurance cover for business interruption losses is typically triggered by material damage that gives rise to the financial loss. Although it has been suggested in some US courts that the Covid-19 virus might cause material damage to property, the definition of damage – physical alteration to the integrity of property – removes any serious possibility of the argument’s success. Accordingly, if there is to be business interruption cover following a pandemic there has to be some trigger of cover independent of physical damage.