Authored by Jim Davis & Brad Dlatt

The coronavirus pandemic is causing unprecedented business closures and revenue losses with governments working hard to respond. As a result of the actual presence of coronavirus cases in all 50 states, civil authorities are prohibiting large gatherings, ordering restaurants and bars closed, requiring a reduction in business operations, or mandating complete area or state-wide lockdowns with residents sheltering in place. Businesses are struggling to understand the scope of available insurance coverage for these losses. Some policyholders are facing denials or disputes from insurers based on purported contamination or virus exclusions in their policies. Others are finding that their policies contain low sub-limits that are inadequate to meet their losses even though the full limits of their policies would provide substantial relief. Given this dire situation, legislative efforts are underway that might provide relief to policyholders.