By: Jordan Jacob
On Monday, August 1, 2016, the Centers for Disease Control and Prevention (“CDC”) issued a travel warning to pregnant women to avoid the Wynwood, Midtown and Edgewater areas in Miami, Florida, due to the increasing number of people contracting the Zika virus directly from infected mosquitos within this one-square-mile region.
This recent travel advisory, along with the increased presence of Zika-infected mosquitos, will certainly impact and possibly interrupt businesses in the affected areas. Goldman Properties – a real estate firm credited with the redevelopment of Wynwood – issued a joint statement with Wynwood Business Improvement District to announce that “Wynwood’s restaurants, galleries, retailers and art-filled streets remain open for business” and the Wynwood community “will do whatever is necessary to be vigilant in our prevention and will follow the guidelines outlined by the Florida Department of Health.”
According to local news outlets, however, some businesses have temporarily closed due to the CDC advisory. For businesses that remain open, owners should review their respective property insurance policy’s provisions regarding business interruption coverage. Generally, an insurance policy does not provide coverage for a loss indirectly caused by “insects” – the classification for mosquitos. Coverage for a business loss caused by insects may be offered by commercial insurers, but it would likely result in an increased premium. With the outbreak of Zika rumored to have started earlier than initially reported, it may be too late to retroactively obtain the proper coverage for Zika-related losses already sustained. Business owners in the affected areas, and surrounding communities, should nevertheless discuss with their insurance agent the possibility of obtaining these coverages in case of future losses.
