Define: Civil-Authority Clause

A Civil-Authority Clause is a provision commonly found in insurance policies that provides coverage for losses or damages resulting from actions taken by a civil authority, such as a government entity, that restricts access to a property.

Actions such as evacuation orders, curfews, or road closures due to a natural disaster, terrorist attack, or other emergency situations are typically covered under a Civil-Authority Clause.

The coverage provided by a Civil-Authority Clause may vary depending on the specific policy language. Some policies may include coverage for losses resulting from a pandemic or public health emergency, while others may exclude such events. It is important to review the policy terms and conditions to determine the extent of coverage.

Losses that may be covered under a Civil-Authority Clause include business interruption losses, extra expenses incurred due to the civil authority’s actions, and property damage resulting from the covered event.

The waiting period, also known as a waiting period or waiting period deductible, varies depending on the insurance policy. Some policies may have a specific waiting period before coverage begins, while others may provide immediate coverage.

In most cases, a Civil-Authority Clause requires that access to the insured property is restricted by a civil authority for coverage to apply. If a business voluntarily closes its doors without any government-imposed restrictions, coverage under the clause may not be triggered.

Coverage under a Civil-Authority Clause typically requires that the insured property is located within the restricted area. If a business is located outside the restricted area but experiences a decline in business due to the civil authority’s actions, coverage may not apply.

The availability of government assistance or grants does not necessarily preclude a business from claiming losses under a Civil-Authority Clause. However, the specific terms and conditions of the insurance policy may impact the eligibility for coverage.

The availability of coverage under a Civil-Authority Clause may be impacted if the business has already received compensation for the same losses from other insurance policies. It is important to review the policy terms and conditions to determine any limitations or exclusions.

A Civil-Authority Clause is typically included as part of a business interruption insurance policy. If a business does not have business interruption insurance, they may not be able to claim losses under a Civil-Authority Clause. It is advisable to consult with an insurance professional to understand the available coverage options.