The short answer
Business interruption requires (1) a covered peril, (2) direct physical damage to insured property, (3) a suspension of operations, and (4) satisfaction of the waiting period (usually 48–72 hours). COVID BI claims were widely denied for lack of physical damage — a rule the courts largely upheld. Prepare a documented profit-and-loss for the interruption period.
Frequently asked
- Does 'physical damage' require visible destruction?
- Nearly always yes — some courts include contamination, but the trend is strict physical alteration.
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