Several lawsuits have already been filed seeking to recover losses caused by the loss of business from COVID-19. Many more are sure to follow. Most businesses carry insurance for business interruption claims as part of the coverage they secured to protect their property.

While courts have referred to these policies as “all-risk” policies, they are not without limitation. The typical policy provides that the insurer will pay for the actual loss of business income if it is caused by direct physical loss to property that is insured. The typical policy also contains protection when a business is closed by a civil authority.