Business Income Losses from Widespread Closure Orders Are Covered Under Standard Property Insurance Polices

Effective as of 8 p.m. on March 19, Gov. Wolf issued an order closing all businesses in Pennsylvania that are not life sustaining. The governor described the situation as a “disaster emergency,” “public health emergency of international concern.” He further declared that “during a disaster emergency” he had the authority to control the movement of persons within the Commonwealth of Pennsylvania and the occupancy of premises within the state. Within hours, Gov. Newsome issued an order requiring all residents of California to remain in their homes except as necessary to get food, prescriptions or health care. More such orders in other states and cities are likely to follow. The business interruption losses for such closed businesses are likely covered under many standard insurance policies....