Two clients, who own a few restaurants in the New England region, were shut down when the civil authorities made it temporarily illegal to drive on the roads during a recent blizzard. All roads were shut down due to the high winds, building debris/signage in the roads, downed power lines, downed trees, and excessive amounts of snow. My clients have been advised by their insurance carriers that their business income coverage will not respond to this situation.

The policies include Cause of Loss – Special form, CP 10 30 06 07 and an actual loss of business income endorsement. Both loss income forms have been endorsed to include a twelve-hour deductible.

It has always been my understanding that additional coverage is afforded if the following standards are met: (1) the civil action must occur due to a covered cause of loss; (2) the civil action prevents access to the insured location; and (3) the civil action was due to physical loss or damage to property other than the insured location.