Glossary

Civil authority

Business income coverage for a shutdown when a government order blocks access to your premises because of damage to nearby property.

Also called: civil authority coverage, prohibition of access, civil authority business income

Civil authority is an additional coverage in the business income form. It applies when a covered cause of loss damages property other than your own and a government action, such as a police cordon, evacuation order or road closure, prohibits access to your premises. Your lost income and extra expense are then covered even though your own building was untouched.

The ISO CP 00 30 10 12 form sets the conditions. Access to the area around the damaged property must be prohibited as a result of the damage, and your premises must be within that area and no more than one mile from the damaged property. The order must respond to dangerous physical conditions from the damage, or be issued so authorities can reach the damaged property. Business income coverage starts 72 hours after the first order and lasts up to four consecutive weeks. Extra expense starts immediately.

Say a wildfire destroys buildings two blocks from a hotel, and police close the street for ten days. The hotel's lost income after the 72 hours may qualify. The trigger is physical damage to other property, not the order alone, so closures without such damage have generally been hard to claim. Other forms use different distances and time limits, so check yours. The guide on civil authority coverage: when an order closes your doors explains how claims are made, and business income covers the base coverage.

Last reviewed October 10, 2026

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Related terms

Business income Property coverage that replaces net income and continuing operating expenses, including payroll, while a covered physical loss suspends operations. Extra expense Property coverage for the added costs of staying open after a covered loss, such as a temporary location, rented equipment or overtime. Period of restoration In a business income policy, the time for which lost income is covered, from a waiting period after damage until repairs should be done or operations resume. Contingent business income Coverage for income lost when physical damage at a supplier, customer or other business you rely on, not your own premises, slows or stops your operations. Actual loss sustained A way of paying business income claims with no dollar limit: the insurer reimburses documented lost income and expenses for a stated period.

Related guides

Active assailant insurance: what it covers and what standard policies miss Active assailant policies pay for crisis response, lost income and liability after an armed attack that standard property and liability forms may not reach. Documenting a business interruption claim, from day one to final payment How to prove a business income and extra expense loss under ISO form CP 00 30: the records insurers ask for, how the loss is measured and where claims stall. Business interruption insurance: how business income coverage works What business income coverage pays after a covered physical loss, how the 72-hour wait, period of restoration and extended income work, and where the gaps are. Filing business insurance claims after a hurricane or wildfire How to protect property, report the loss, sort wind from flood and smoke from fire, claim business income and work the clocks after a hurricane or wildfire. Civil authority coverage: when an order closes your doors Civil authority coverage pays lost income when a government order blocks access after nearby damage. The one-mile, 72-hour and four-week limits, and case law. What the COVID-19 business interruption lawsuits decided Courts mostly held COVID-19 closures were not direct physical loss under property policies. The key rulings, the exceptions, and what to check in your policy.

Related en español

Seguro de interrupción de negocios: cómo funciona la cobertura de ingresos Qué paga la cobertura de ingresos del negocio tras una pérdida física cubierta: la espera de 72 horas, el periodo de restauración, la extensión y los huecos.