As the world continues to navigate the impact of the spread of COVID-19 across the globe, many businesses are looking for remedies and solutions that can provide relief for the financial loss created by the pandemic. Can business interruption insurance help? Unfortunately, the short answer — for now — is probably not. Business interruption insurance is only in effect if a business closure is for a covered cause. In 2006, after the SARS outbreak, the Insurance Services Office (ISO) added a clause to their standard forms that clarified that virus pandemics are not a covered cause. ISO provides the standard forms for nearly all insurance providers, who very rarely deviate from the industry standard form.

Terry Buckner, industry veteran and owner of Buckner Insurance, confirmed with Colliers that after a review of all of their clients’ policies and discussions with a peer group of leading insurance companies, they have not seen a single policy that will cover the corona virus shutdown.  Understandably, these entrepreneurs are frustrated that they paid billions of dollars in insurance premiums for this sort of catastrophe to find themselves left out to dry.

Now, insurance associations are receiving pressure from federal lawmakers and policy holders alike, demanding change or government action. So, where do we go from here?