With the recent onslaught of Covid19 sweeping the globe there has been a lot of conversation about insurers providing coverage for business interruption losses caused by disease outbreaks and pandemics. Up until now the insurance industry as a whole hasn’t written coverage for this kind of situation. In fact, most policies specifically exclude disease pandemics. 

The reason is simple: The carriers would go bankrupt.  

Doug Rieder with Sterling Seacrest Partners focuses on insurance and risk management for businesses. He says pandemic-caused losses are usually excluded from most business interruption policies. The reason is that they can affect all businesses, all the same time.