Will it meet the Insurance physical damage standard if property is damaged because it is vacant- -no one is allowed to be on-site due to stay at home orders? For example, there was a leak and no one was there to notice it or address it before it became advanced. If so, then there is a loss event caused by a force majeure so in theory the other related costs could be covered?
If the policy does have a vacancy clause in it. Most of them it’s 60 days. If all of the business property is still as in, they haven’t moved the chairs, they haven’t moved the tables, this may not meet the definition for vacant, it’s just not being used. So any peril, something causing physical damage would probably be covered. And you have a pipe that leaks, you have something that freezes, you’ve got a car that comes through the front window that’s absolutely physical damage and those things would be covered. And then you may be able to make the argument that the business interruption, the fact that you have to be closed for 60 days is because of the damage, not because of the order not to open. It would be worth making that argument.