First it is helpful to define the term “exclusion.” In the insurance context, an “exclusion” is a provision that negates insurance for some type of risk. Exclusions narrow the scope of what the Carrier is obligated to cover. Sometimes the insurance agreement uses very broad language. Carriers use exclusions to carve away coverage for some risks they are unwilling or unable to insure.
In the COVID-19 context, some commercial insurance policies include language that expressly exclude coverage for damages caused by bacteria, viruses, or microorganisms.
The primary things that you should look for in a commercial policy are:
- Business interruption coverage
- Civil authority coverage
- Microorganism coverage
- Any coverage exclusions