Business interruption insurance as a means of spreading pandemic-related losses

Geneva Pap Risk Insur Issues Pract. 2023 Mar 27:1-19. doi: 10.1057/s41288-023-00295-9. Online ahead of print.

Abstract

This article discusses business interruption insurance as a measure of spreading risk in the context of the COVID-19 pandemic. In drawing a picture of how business interruption insurance has been handled and governed to date by courts and regulators in the U.K., Australia and the U.S., the contribution is specifically concerned with providing tentative answers to two questions: first, whether the design and interpretation of business interruption policies have made it a suitable means of spreading pandemic risks for policyholders; and second, how methods of resolving disputes over pandemic-related losses could improve the position of policyholders in relation to the insurance sector.

Keywords: Business interruption insurance; COVID-19 pandemic; Embracing risk; Spreading risk.