Two years ago there was much uncertainty regarding how the COVID-19 pandemic would play out, and we all undoubtedly questioned when the world might return to some sense of normalcy. Likewise, in the insurance industry at that time, there was serious debate as to whether COVID-19 business losses would be covered by insurance and, if so, how that would impact the industry. For example, a March 30, 2020, headline from the Wall Street Journal proclaimed that “Pressure Mounts on Insurance Companies to Pay Out for Coronavirus.” Moreover, lawmakers in some states introduced bills that would have required insurers to pay COVID-19 claims without regard to policy language and exclusions.

Of course, much has changed in the last two years. The proliferation of vaccines and new, life-saving treatments has allowed the world to emerge from the pandemic. In addition, courts are now overwhelmingly finding that COVID-19 business interruption claims are not covered, reasoning that “direct physical loss” means something more than economic loss.