Property · Insurance Term
Civil Authority Coverage
Definition
Civil authority coverage pays lost business income and extra expense when a government order prevents access to your property because of covered damage to nearby property. It applies even if your own building is not damaged, within the limits and time periods the policy sets.
In Plain English
It is an extension of business income and extra expense coverage. Many standard forms require that the damage to the other property be caused by a covered peril, that the order prohibit access to your premises, and that your premises be within a set distance of the damage, often one mile.
Civil authority coverage is usually limited in time, often to a few weeks, and frequently starts after a waiting period. It does not replace longer coverage that depends on damage to your own property within the period of restoration.
Related coverages include contingent business income, for losses caused by damage at a key supplier or anchor tenant. Ask your agent which of these your policy includes.
Not sure how your policy handles this? Have us review it, or get a quote.
Example
Hypothetical: a fire damages a building next to a hotel. The city closes the block for two weeks for safety. The hotel is not damaged but cannot take guests. Civil authority coverage would typically pay the hotel's lost income for that period, subject to the waiting period and limits.
Why It Matters for Texas Property Owners
Texas hurricanes, floods and freezes can lead to road closures and evacuation orders. Coverage depends on the cause: for example, if a closure follows flood damage that the policy excludes, civil authority coverage may not apply.
What to Watch For
- Check the distance, waiting period and maximum time in your civil authority provision.
- Ask whether the triggering damage must be from a covered cause.
- Keep copies of government orders and closure notices.
- Track lost revenue and extra costs carefully during any closure.
Last updated October 14, 2026 · Primesure editorial team · How We Write