Business closure insurance (BSV) in the Corona crisis

Corona-related plant closures: The insurances

When the authorities decided to close the restaurantsat the end of March 2020, many restaurateurs were sure that this would be a clear case for the business closure insurance schemes. Business closure insurance is a catering industry and hotel industry as well as in all food-processing companies or companies operating in the context of such companies. The insurance, at least in the opinion of many, is intended to cover a agreed costframework in the event of a officially ordered closure of the business, thus ensuring the continued existence of the business. The farm closure insurance is of existential importance for all farms dealing with food, because there is always a risk of disease germs and pathogens finding their way into the company.

In principle, it is also important in the context of the corona crisis that the risk of a infection hazard in the company or the mere suspicion thereof, with the consequence of an official closure of the company , is already insured. For this reason, a business closure insurance should also be sharply separated from a business interruption insurance, as the latter is not affected by the Infection Protection Act.

In contrast to the former, a business interruption insurance policy only ever regulates in the context of a material damage that has occurred, which was also the damage triggering event. Accordingly, a business interruption insurance policy would only regulate the loss incurred and the loss of earnings if, for example, a business is unable to continue production after an explosion. Thus, in the context of the corona crisis, no triggering event with property damage has occurred and the insured person can therefore claim any insurance claim. However, it should be mentioned at this point that business interruption insurance could also be considered for claims settlement, possibly by means of an additional insurance module, so-called extended coverage module or a all-risk policy,.

An individual check of the contracts is absolutely necessary at this point, since, if necessary, epidemic and/or infectious diseases may be expressly named as insured risk. Furthermore, it is possible that the insurance includes all-risk cover, which also covers corona-related losses. This would be interesting insofar as retroactive losses would also be covered, depending on the contract.

Current problem of business closure insurance in the context of Corona

For several weeks now, this topic has also been making the rounds in the media. caterers and representatives from the food industry, who had to close due to the corona pandemic, are increasingly encountering insurers, which preclude the settlement of claims by the business closure insurance in connection with corona. This is particularly threatening for restaurateurs and an entire industry sector, as the application for short-time work benefits and a simultaneous entitlement to insurance benefits are mutually exclusive. short-time work allowance (KUG) ist in summary a company aid to relieve employers to keep employees in the company so that they are still available after the crisis. The problem in connection with the current pandemic is that employers who are entitled to a legal claim from a company closure insurance (BSV) may not apply for short-time work benefits.

Due to the large number of affected businesses, some insurers now claim that the closure of a business due to corona is not even covered by the policy. Nevertheless, there are many insurers who regulate completely without any problems. Still other insurance companies work in particular in Bavaria with advanced “goodwill payments” of 10-15%, if one waives his full scope of benefits in return. With an almost one hundred percent drop in all revenues, entrepreneurs are currently finding it difficult to manoeuvre the company through the crisis. It is already foreseeable that the insurers are facing a wave of lawsuits and that many of the claims made so far have been wrongly rejected.

Our recommendation:
Leave your business closure insurance in case of doubt and then claim the full extent of the insurance benefit.

Business closure insurance Corona: How we support you in your business closure

  • Checking your business closure insurance in the context of Corona
  • Check your business interruption insurance
  • Advice on the topic short-time work allowance in the context of insurance
  • Advice on avoiding company insolvency
  • Consulting for the healthy restructuring of a company according to Corona
  • Assertion of claims for damages
  • Settlement of canceled contracts and agreements in connection with the corona crisis
  • Liquidation and reorganisation
  • Advice and representation in judicial disputes also internationally

Helpful articles on the topic of business closure insurance and corona:

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About the author

Dr. Johannes Fiala Dr. Johannes Fiala

Dr. Johannes Fiala has been working for more than 25 years as a lawyer and attorney with his own law firm in Munich. He is intensively involved in real estate, financial law, tax and insurance law. The numerous stages of his professional career enable him to provide his clients with comprehensive advice and to act as a lawyer in the event of disputes.
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