Business interruption insurance and COVID-19: Coverage and issues and public policy implications.

Abstract

This study provides a discussion of the impact of COVID-19 on business interruption losses in the U.S. as well as an overview of the commonly relied upon ISO Business Income and Extra Expense (BIEE) insurance policy. The authors offer an analysis of the language contained in the unendorsed BIEE and summarize the arguments as to why business interruption insurance should or should not cover pandemic-related losses. Finally, the authors provide an overview of proposed approaches to address business interruption losses attributed to current and future pandemics.