Search
  • RoccoAdvantage

Business Interruption Insurance Possibly Expanded



There has recently been a push for both state and federal legislation that would force insurance providers to cover business interruption claims relating to the COVID-19 crisis, even with policies that have a direct pandemic exception. Many business owners are growing increasingly frustrated that they pay their premiums year after year and now when they truly need relief their insurer denies their claim.


The restaurant industry has been the main battleground for this dispute. Most restaurants either don't have business interruption insurance or they have a pandemic exception in the policy.


Insurance companies are combating the idea of expanded coverage legislation by arguing that it would undermine the nation's insurance system and that it would be a violation of the Constitution's Contract Clause.


As this crisis continues, it is clear that more businesses will be at odds with their insurance providers for this coverage. Although states and federal legislators have discussed possible legislation, no actual laws have been presented yet.


This is an issue that all businesses must keep an eye on. If legislation is passed, it could equate to millions of dollars in insurance benefits for small businesses.

10 views