While small businesses are struggling to keep their doors open during the pandemic, some are turning to their insurance policies to help them stay afloat. But there’s one problem. Standard business interruption policies don’t cover COVID-19.
“An exclusion for pandemic-caused losses — Exclusion of Loss Due to Virus or Bacteria — has been incorporated into standard business interruption policies since 2006, following the SARS outbreak,” says Mark Friedlander, the Director of Corporate Communications for the Insurance Information Institute.
Thanks to that precedent, there have been more than 1,000 business interruption lawsuits filed since March, with rulings in Illinois, New York and the District of Columbia and businesses that have taken their insurers to court, hoping to make them cover some of the financial hurdles.
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According to American Property Casualty Insurance Association, it would cost… Read More