Why Are Insurance Companies Denying Restaurant Claims in Wake of Pandemic?
Partner and chair of Herrick's Insurance & Reinsurance Group, Alan Lyons was quoted in an article in Eater discussing the challenges restaurants, forced to close to combat the spread of COVID-19, may face when trying to collect from insurance companies. Lyons notes the problem for many restaurants is that either their insurance policies contain clauses excluding cases of viruses and bacteria or they don't contain the clause, yet they have to prove any loss "was caused by direct or physical damage to property. That can be difficult to demonstrate with a virus because we're not dealing with the type of damage you see with fires of flooding."
Portions of this article also appeared in a Business Insider article.