Does Business Disruption Insurance Cover Businesses in a Pandemic?

Some businesses have been paying for insurance in case something like Coronavirus happened.

Alicia Nieves found out they're now having trouble getting paid out.

SOME BUSINESSES HAVE BEEN PAYINGFOR INSURANCE... IN CASESOMETHING LIKE THECORONAVIRUS HAPPENED.BUT AS ALICIA NIEVES FOUNDOUT... SOME OF THOSECOMPANIES... ARE NOW HAVING AHARD TIME GETTING PAID OUT.MANY AMERICANS LIKELY DID NOTSEE A PANDEMIC COMING.JUST THINKBACK FIVE OR SIX MONTHS AGO.WHEN WE WERE WORRIED ABOUTHOLIDAY GIFTS AND GATHERINGS.WEWOULD HAVE NEVER PREDICTED,THEN.A VIRUS WITH UNPRECEDENTEDHEALTH IMPLICATIONS.ONE THATWOULD CAUSE A SHUTDOWNOF THE U.S. ECONOMY.

IN A WAYNEVER SEEN BEFORE."IT BROUGHT MY BUSINESS TO ASCREECHING HALT."TED CHALLENGERIS THE OWNER OF SEVERAL NIGHTCLUBS INBOISE, IDAHO."WE ARE JUST IN SURVIVAL MODE,IN STRUGGLE RIGHT NOW."LIKE MANYSAVVY SMALL BUSINESS OWNERS,CHALLENGER PLANNED FOR THEUNEXPECTED.IN ADDITIONAL TO ALLHIS REQUIRED BUSINESS INSURANCE,CHALLENGER FOR DECADES HAS BEENPAYING FOR ADDITIONAL COVERAGECALLED"BUSINESS INTERRUPTIONINSURANCE".

HE THOUGHT, THATWOULD BE HIS BUSINESS'SLIFELINE."THE INSURANCE COMPANY THEYOUTRIGHT DENIED MY CLAIM."HISINSURANCE COMPANY CITED THIS ONELINE IN THE POLICY THAT STATES"EXCLUSION OF LOSS DUE TO VIRUSOR BACTERIA."ACROSS THECOUNTRY OTHER INSURANCECOMPANIES ARE USING THIS LINE TODENY CLAIMS FOR THOUSANDS OFBUSINESSES.

AND FOR POLICIESTHAT DON'T HAVE THAT WORDING.INSURERS ARE SAYING THEY DID NOTUNDERWRITE FOR THIS KIND OFCLAIM."I HAVE HIGH HOPES THAT OURELECTED OFFICIALS WILL SEE APROBLEM AND DO SOMETHINGHERE."WHILEORGANIZATIONS LIKE THE INSURANCEINFORMATION INSTITUTE HAVE COMEOUT SAYING "IF INSURERSNATIONWIDE HAD TO PAY BUSINESSINTERRUPTION POLICY CLAIMS FORWHICH INSURERS COLLECTED NOPREMIUM, IT COULD COST THEINDUSTRY EACH MONTH ANYWHEREFROM ROUGHLY $150 BILLION TONEARLY ASHIGH AS $380 BILLION" SEVERALSTATES BELIEVE THE INDUSTRY CANAFFORD THIS AND HAVE INTRODUCEDLEGISLATION TO FORCE COMPANIESTO PAY OUT FOR THE POLICY .IDENTIFYING THAT "THE INDUSTRY'SPOLICYHOLDERS' SURPLUS STOOD AT$812 BILLION AS OF SEPT.

30,2019." "FROM WHAT I UNDERSTOODAFTER 9/11 THERE WAS A TERRORISMCLAUSE WRITTEN INTO THEINSURANCE AND CONGRESS PASSED ABILL THAT THEY DID HAVE TO PAYOUT ON IT TO THE BUSINESSES HURTDURING 9/11.

SO I VERY MUCH HOPETHAT.

I WISH I HAD MORE TIME TOSPEND ON IT BUT WE ARE JUST INSURVIVAL MODE AN STRUGGLINGRIGHT NOW AND IT DOESN'T REALLYAFFORD US TIME TO GO CHASINGLEGISLATORS AND LOBBYIST."INADDITION TO CURRENTLY NOTGETTING THEIR CLAIMS PAID, MOSTSMALL BUSINESSES.ARE STILLCURRENTLY REQUIRED TO CONTINUEPAYING FOR INSURANCE DURING THECLOSURE OR THEY RISK LOSINGTHEIR BUSINESS LICENSES.

I'MALICIA NIEVES REPORTING