Are Curfews Covered Under the Civil Authority Clause of Business Interruption Insurance?

a business owner holding up a closed sign

In times of civil unrest, local governments may decide to impose curfews on local communities. This can result in significant losses for business owners.

Business owners may wonder if their business interruption insurance policies can compensate them for losses incurred during government-ordered curfews. Below, we discuss whether this is possible.

What is the Civil Authority Clause?

Business interruption insurance is meant to cover business owners for losses caused by natural disasters, vandalism, and other factors outside their control.

One element that some business interruption insurance policies have is the civil authority clause. The civil authority clause covers losses that business owners incur due to government-ordered shutdowns. While this largely applies to statewide shutdowns in response to the COVID-19 pandemic, it may also apply to the curfews that get imposed during times of civil unrest or commotion.

In fact, the actions by a civil authority that are covered under this policy include curfews, evacuations, and other restrictions on access to places of business by customers, employees, and owners.

What Will Business Interruption Insurance Pay For?

Business interruption insurance may compensate business owners for the following losses due to the aforementioned factors:

  • Lost revenue
  • Property loss and destruction
  • Cost to clean and sanitize
  • Cost of property repairs
  • Travel expenses

Have You Suffered Significant Business Losses? We’re Here to Help

If you have incurred significant business losses due to the coronavirus pandemic, vandalism, or something else, our Michigan business interruption insurance attorneys are here to help you file a claim and negotiate with insurers while you focus on running your business.

Contact Grewal Law PLLC at (888) 211-5798 to schedule a free consultation.