Pardon the Interruption: Obstacles to a Successful COVID-19 Business Interruption Claim

21 Wake Forest J. Bus. & Intell. Prop. L. 251

The COVID-19 pandemic has caused a tremendous amount of
financial hardship, as more than 100,000 small businesses have
permanently closed their doors due to loss in revenue as a result of
government mandated lockdowns. Estimates suggest small businesses
lost $393 to $668 billion per month at the height of the pandemic. Desperate for financial relief, these businesses rightfully turned to their
insurance policies for coverage that the pandemic could have triggered.
In a high profile example, the All England Lawn Tennis and Croquet
Club, host of the Wimbledon Championships, paid $1.9 million per year
in pandemic insurance following the 2003 outbreak of the SARS virus.
This foresight enabled the All England Club to escape catastrophic
losses following cancellation of the 2020 tournament, and instead
collected a $142 million dollar pay out. However, this is not the norm
for small businesses.