In Florida, many non-essential businesses were shut down due to orders from the Governor and various county governments.

My insured has a Businessowner's policy, with the Hartford. The policy includes $50,000.00 for viruses. Does civil authority prevail without physical damage? Civil Authority is a Coverage Extensions and Additional Coverages.

The Hartford denied the claim.

Florida Subscriber

Even though the endorsement gives coverage for viruses, that coverage only applies if the virus is the result of one of the "specified causes of loss" (other than fire or lightning); or equipment breakdown (see 1.a and b. under paragraph B.).

While an endorsement can add or remove coverage, all other provisions of the policy remain the same. Since the virus is not a "specified cause of loss", nor was it a result of a "specified cause of loss", then the coverage would not apply. Since the Civil Authority coverage is only triggered by direct physical damage, and the virus coverage is not applicable in this situation, then there would also be no coverage for the civil authority.

This premium content is locked for FC&S Coverage Interpretation Subscribers

Enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.

  • Quality content from industry experts with over 60 years insurance experience, combined
  • Customizable alerts of changes in relevant policies and trends
  • Search and navigate Q&As to find answers to your specific questions
  • Filter by article, discussion, analysis and more to find the exact information you’re looking for
  • Continually updated to bring you the latest reports, trending topics, and coverage analysis