In the wake of the ongoing novel coronavirus global pandemic, U.S. companies are facing staggering losses due to the interruption of their business operations. To combat the spread of the virus and minimize the physical loss and property damage caused by the COVID-19, state and local governments implemented a number of social distancing measures that included ordering citizens to shelter in place, shuttering “nonessential” businesses and placing restrictions on business that were allowed to continue to operate, such as allowing only take-out or delivery service for restaurants.  This has resulted in billions of dollars in lost revenue across the country.

Understandably, businesses affected by COVID-19 have turned to their insurance carriers for relief under their business interruption coverage (and related coverage for loss from Orders of Civil Authorities). The response from the insurance industry has been underwhelming, with the industry generally taking the position that there is no coverage for COVID-19-related business interruption losses. One carrier has gone as far as to issue a blanket statement, without any investigation of any individual claims, that none of its policies provide business interruption coverage for COVID-19-related losses.