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Business Interruption Policy Holders Lose Court Fights

The COVID-19 pandemic saw a surge in business interruption claims, yet many businesses found their insurance policies did not cover pandemic-related losses. Around 81% of 200,000+ claims were closed without payment, as courts have ruled pandemic circumstances didn’t fit policies, which were designed to cover direct physical loss or damage. Many pPolicies often excluded coverage for viral outbreaks, disease, or pandemics, and required physical loss. Insurers started excluding viral infections from business interruption policies after facing massive losses due to the Severe Acute Respiratory Syndrome outbreak in 2003.

Source: www.cfo.com –

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