Many business interruption policies exclude coverage for pandemics and require physical damage to occur on the site. Others can be ambiguous, leading to possible coverage, legal experts said.
On March 16, the owners of New Orleans restaurant
Oceana Grill sued Lloyd’s and officials in Louisiana, asking a state court to declare that the coronavirus, whether inside or outside the restaurant, is a type of “direct physical damage” that would require insurers to pay.
Apparently, there is no exclusion for pandemics in the policy, so the question is whether the presence of the virus constitutes physical damage to the property.