Business Interruption Insurance and Policy Exceptions for the COVID-19 Pandemic

The outbreak of COVID-19 led to the closing of thousands of businesses across the country. Some businesses that were closed by state and local governments are now seeking business interruption coverage as a result. There currently are two common business interruption policy forms: gross earnings and business income. Most insurers are stating that there are policy exemptions for viruses and pandemics that prevent insured businesses from receiving business interruption coverage due to COVID-19. In response, there is legislation being crafted in several states that purports to override these policy exemptions for viruses. Is this type of legislation constitutional under Article I, Section 10, Clause of the United States’ Constitution? Professor Richard Epstein, Professor of Law at New York University, discusses these issues with us in this Federalist Society teleforum. Featuring: -- Prof. Richard A. Epstein, Laurence A. Tisch Professor of Law and Director, Classical Liberal Institute, New York University School of Law