Ongoing wildfires around Los Angeles have caused absolute devastation and damage across southern California. Thousands of people have lost their homes or been displaced, and businesses have suffered property damage and income loss caused by area closures and secondary damage effects of the fires. Many establishments, from local restaurants to the Los Angeles Rams NFL team, have been displaced due to the effects of the wildfires, and Billboard is keeping a running list of canceled music events throughout the area.

Even if they have not incurred fire damage, businesses affected by the wildfires are entitled to coverage under their insurance policies for business income loss stemming from smoke damage. However, insurance companies may argue that smoke-related damage is not covered, citing COVID-19 case law holding that the virus did not constitute physical damage to property. Nevertheless, policyholders should keep in mind that smoke damage is, and has always been, covered under insurance policies.

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