Prolonged government shutdowns, continuing supply chain disruption, and rising concerns about the efficacy of federally issued relief have left many lenders, borrowers, and servicers wondering whether payouts on business interruption insurance could provide Main Street with a much needed liquidity boost. In this distribution, Harbor Group explains the basics of Business Interruption coverage, how it might perform against COVID-19 losses, and importantly, who will bear the short and long term costs of an insurance industry backed relief effort.
Can or will owners and operators be able to rely on Business Interruption coverage to recoup income lost as a result of COVID-19? The short answer is, maybe – recent, ongoing developments in state and federal legislation might make the broad availability of proceeds much more likely than most in the industry previously thought. Continue reading “Not All Heroes Wear Capes: Business Interruption Insurance as a mechanism for recovering income losses due to COVID19”