Coronavirus: Insurance Coverage for your Business

Jordan Uditsky • March 21, 2020

“Am I covered for coronavirus?” Amidst the myriad issues resulting from the coronavirus pandemic, business owners are questioning whether their insurance policies cover their unexpected losses. Like most insurance inquiries, the answer depends on the detail of the underlying policies. Here are some types of insurance that your business may carry, and the factors that go into whether they’ll cover your business for the coronavirus pandemic.


Business Interruption. There’s no doubt that the pandemic has interrupted business operations across just about every industry, but the question of whether it triggers interruption coverage is another matter. Business interruption is most often tied to a commercial property insurance policy, wherein the coverage applies to economic losses resulting from disruptions in business operations. However, most business interruption insurance won’t trigger without a physical loss to the property, such as fire damage. Whether the coronavirus actually persists on inanimate objects is still an issue of current debate, let alone whether the virus damages property. There is some precedent for an unseen substance causing physical damage (such as asbestos), but without a separate endorsement covering virus or bacteria it will likely be hard convincing insurance companies to cover coronavirus interruptions under a typical business interruption policy.


Contingent Business Interruption. Another business interruption insurance, contingent business interruption (or supply chain insurance) covers losses that don’t belong to your property, but rather the property of your customers or suppliers. If a key vendor drops out of your supply chain, it’s reasonable to wonder whether this insurance covers your loss. Like business interruption, the loss to trigger coverage from a contingent business interruption policy must also be physical.


Liability Insurance. Apart from business interruption, the coronavirus may result in claims from your customers. Commercial general liability insurance covers your business for defense and indemnity costs resulting from third party lawsuits. For instance, health care providers may find themselves facing claims that they did not exercise reasonable care in protecting patients from exposure to the coronavirus.


Event cancellation. Sports games, concerts, conventions and many other events are being cancelled around the world due to the coronavirus. Some event cancellation insurance policies may include coverage for cancellation due to infectious diseases. On the other hand, some policies include endorsements that specifically exclude infectious diseases.


If you believe that your business may be covered by any of these policies due to the coronavirus pandemic, you must notify your insurer within the timing requirements of your policy. If you’re unsure whether your losses trigger coverage, we’re here to help you. Contact us at (630) 833-5533 or info@ghulaw.com for a free consultation.

Options for Addressing Title Encumbrances in Loan Transactions

By Jordan Uditsky • January 4, 2022
An amendment to the Mechanics Lien Act (the "Act') permits the bonding over of mechanic's liens in the State of Illinois. The bill was signed into law ( 770 ILCS 60/38.1 ) on July 28, 2015, and went into effect on January 1, 2016. This statute is significant because it allows parties to "clear title" to real property that would otherwise be subject to a mechanic's lien. An eligible applicant will be permitted to substitute a bond for the real property subject to the underlying mechanic's lien so that the lien attaches to the bond instead of the real property. Who is Eligible? To take advantage of 770 ILCS 60/38.1 , the party desiring to bond over the lien must be an eligible applicant. The statute defines applicant relatively broadly to include the following parties: An owner; Other lien claimant; A party that has an interest in the property subject to the lien claim; An association representing owners organized under any statute or to which the Common Interest Community Association Act applies; or Any person who may be liable for the payment of the lien claim, including an owner, former owner, association representing owners organized under any statute or to which the Common Interest Community Association Act applies, or the contractor or subcontractor. Process for Filing a Petition To effectively substitute the bond for the real property, the applicant must file a petition with the clerk of the circuit court in the county where the property subject to the underlying lien claim is located. The petition must include the following: The name and address of the applicant and the applicant's attorney, if any; The name and address of the lien claimant; If there is a pending action to enforce the claim, the name of the attorney of record, or if there is no pending claim, but the claim has been recorded, the name of the preparer of the lien claim; The name and address of the owner of record of any real estate subject to the claim or the name and address of the homeowners association or the condominium association; A legal description of the property; A copy of the lien claim; A copy of the proposed eligible surety bond; A certified copy of the surety's certificate of authority from the Department of Insurance or the state agency charged with the duty to issue the certificate; and An undertaking by the applicant to replace the bond with another eligible surety bond in the event that the proposed eligible surety bond ceases to be an eligible bond. After filing a proper petition, the applicant must provide notice and a copy of the petition, either by personal service or certified mail, to every party whose name and address is stated in the petition and the lien party's attorney of record. Jordan Uditsky, an accomplished businessman and seasoned attorney, combines his experience as a legal counselor and successful entrepreneur to advise business owners in the Chicago area.

On the Move: Legal Issues Affecting Motor Vehicle Manufacturer and Dealer Law

By Lou Chronowski • November 10, 2021
“Pandemic Impact? - New York Federal Court Allows Termination Dispute to Proceed” 

On the Move: The Future is Now!

By Lou Chronowski • October 19, 2021
Welcome to GHU’s newest blog – On the Move: The Future is Now! This blog focuses on legal and policy issues facing the vehicle industry. The future is now for the vehicle industry. Some states (CA and MA) have issued mandates requiring that vehicle manufacturers stop selling new ICE (internal combustion engine) vehicles by 2035. Most legacy vehicle manufacturers have made various announcements stating that their respective product portfolios will move from ICE to zero emission vehicles (EVs) over the next 10-14 years. Another significant issue facing the issue relates to how vehicles are purchased. Over the past several years, Tesla has charted a distribution model that rejects traditional dealerships and uses direct sales and service. Other EV manufacturers like Rivian and Lucid appear to be headed in a similar direction. It is well known that Apple and Amazon have plans to enter the vehicle space as well. Consumers will have a large role in determining how they want to purchase vehicles and vehicle services (much the same as they did with respect to on-demand transportation with the likes of Uber and Lyft). The question is whether traditional manufacturers will be kept on an uneven playing field with these newer market entrants. Finally, autonomous vehicles (AVs) are right around the corner as well. In addition to consumer adoption and acceptance of EVs, it is still unknown how consumers will react to AVs and whether AVs have a large role in America. The future is now. The changes in the industry are happening now and happening at fast pace. This blog will continue to explore issues facing the vehicle industry. For 20 years, Lou Chronowski has represented motor vehicle manufacturers helping them navigate complex laws and regulations and litigating disputes against dealers. If you have any questions, please contact Lou at lchronowski@ghulaw.com .
Show More