Does a pandemic qualify for business interruption insurance? It’s a question hoteliers shouldn’t be asking themselves, but rather, their insurance company.
COVID-19 was swift and pernicious, bringing the hospitality industry to its knees. As hotels find their footing, filing a business interruption claim with their insurer is of the essence, regardless of the ambiguity over whether a pandemic qualifies a business for such relief.
Insurers, unsurprisingly, have denied the vast majority of these claims, which have in turn triggered scores of lawsuits asking courts to make insurers honor their contracts. Insurance companies contend that 1) the policies require physical loss or damage.