Business Interruption Insurance: Filing a Claim


This practice note addresses some considerations and mechanics surrounding filing a business interruption claim with an insurer. The need to file one arises from a temporary or permanent business closure made necessary by an occurrence that is not of a policyholder's making. Often, a provision in an insurance policy for business interruption benefits is conjoined with one for additional expenses that are incurred by the same or a related occurrence that triggers payment of a business interruption claim. The additional expenses may be incurred by the policyholder's actions trying to mitigate the effects on their business from the same occurrence causing the business interruption losses. Because of the business closures and business interruption claims resulting from the COVID-19 pandemic, the discussion includes some focus on claims arising from that basis.