Does Business Interruption Cover Pandemics?

California Department of Insurance guidance says business-income coverage typically requires direct physical loss or damage from a covered peril and notes that many commercial policies exclude viral or bacterial contamination and pandemic losses. A government closure order by itself may not satisfy the policy trigger. Some specialized products or endorsements may offer different terms, but their existence cannot be assumed from a standard property quote.

Read the physical-loss trigger, virus or communicable-disease exclusion, civil-authority provision, and any pandemic endorsement. Check the policy period and whether the relevant cause and location are covered. The CDI source addresses California guidance; actual disputes and policy wording can vary by contract and jurisdiction.