Is Vandalism Covered by Business Interruption Insurance?

a man breaking into a business

Vandalism can cost business owners significant losses in property damage and missing inventory. And, unfortunately, it’s something most business owners experience at some point.

Below, we discuss whether business owners can turn to their business interruption insurance policies for compensation related to vandalism.

What Does Business Interruption Insurance Cover?

Business interruption insurance is meant to compensate business owners for losses caused by factors outside of business owners’ control. The losses that business owners may be compensated for while their business was closed or recovering include:

  • Lost revenue

  • Property loss and destruction

  • Cost to clean and sanitize

  • Cost of property repairs

  • Travel expenses

Since vandalism is a form of property loss and destruction, most business interruption insurance policies will cover damage to the physical part of a business and its contents that are caused by vandalism or civil commotion.

Civil commotion, in particular, may make it necessary for local governments to impose curfews on communities. This is where some business interruption insurance policies’ “civil authority” coverage may come into play.

Civil authority coverage is meant to compensate business owners for losses incurred due to government-ordered shutdowns. It’s possible that business losses that happened during curfews may be covered under a business interruption insurance policy.

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

Although insurance companies should be honoring their customers’ business interruption insurance claims, many business owners are having a hard time getting their claims approved.

If you have incurred significant business losses due to vandalism, government-ordered shutdowns, the coronavirus pandemic, or something else, our Michigan attorneys are here to help you.

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