Man holding an insurance policy. Property policies cover all risks for any fortuitous loss unless there is a specific exclusion. Often a policy will exclude “land” and “water” and occasionally there will be an exclusion for “air.” (Photo: Nito/Shutterstock)

Could a lack of insurance coverage push a company into bankruptcy? Of course. The remains of the once financially powerful manufacturers, distributors and suppliers of products containing asbestos, that lacked coverage, make that very clear.

Today, as a result of the COVID-19 pandemic and the ensuing government-ordered shutdowns, many otherwise financially sound entities are filing for bankruptcy. Indeed, the bell has already tolled for Hertz, J. Crew, Gold’s Gym, Tuesday Morning and CMX Cinemas, among many others. Is there any insurance coverage that might stave off any part of the ongoing business meltdown? There is; civil authority coverage under the business interruption part of a property policy.

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