Business interruption coverage is triggered when a policyholder sustains "direct physical loss of or damage to" insured property by a covered cause of loss.
Before business interruption coverage responds, there must be damage to property leading to the cessation of a business. This requirement applies to business income-dependent property losses (supply chain) and civil authority losses covered by business interruption policies.
The scope of coverage is highly dependent upon the specific terms of each insurance policy. This content does not capture all lines of coverage or all potential considerations. If you have any questions, please contact your insurance account manager or agent.
