Whether your business has coverage under a business interruption insurance policy for having to evacuate the business depends upon the wording of the policy. Most insurance policies we have reviewed do provide for coverage if the business is forced to be evacuated under civil authority. However, the time period for this type of coverage is generally limited to two weeks. We have seen some cases where a client’s business was shutdown due to an evacuation order for a period longer than two weeks and no coverage was available after the first two weeks. Had the business sustained damage from the fire for which the evacuation order was issued, the coverage would have been much longer; in this case a 12 month period.

In reviewing your company’s insurance policy – determine whether a two week limitation on the business interruption due to an evacuation portion of your policy is adequate or whether you need to look into increasing your insurance limits. You may find the cost prohibitive or you may, in your risk assessment, determine it is important to increase coverage under an evacuation order.