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  • Writer's pictureBrad Fawley


If your business has been interrupted due to Covid-19, check your Property Insurance Policy. It may have language like this:

If so, you will also need to also check the definition of “Covered Cause of Loss” to determine whether coverage has been triggered. In this respect, some policies broadly cover all causes of loss that are not excluded.

If your policy has the following exclusion, don’t be fooled into believing you have no coverage.

A virus is not a “mold, mildew, fungus, spore or other microorganism “of any type.” A virus is not a living thing and, thus, cannot be a “microorganism.” “Technically a microorganism or microbe is an organism that is microscopic. The study of microorganisms is called microbiology. Microorganisms can be bacteria, fungi, archaea or protists. The term microorganisms does not include viruses and prions, which are generally classified as non-living.”

If there is any doubt on whether a virus is a “microorganism,” the general rule is that any term in an insurance policy that is capable of more than one reasonable interpretation is ambiguous. Ambiguous terms are construed against the insurance company and in favor of coverage.

While your policy may have different language than the above, you should read your policy carefully to determine whether you are covered. For more information on interpretting insurance policies, you might be interested the article. "THE ROSETTA STONE - OR, A METHOD TO UNLOCK THE MEANING OF AN INSURANCE POLICY" found at

This tip is not legal advice. For legal advice, you should consult with an attorney that has experience representing policyholders in claims for insurance coverage.

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