Expert weighs in on business insurance policies during Covid

Martha Lester has spent her career working in insurance, studying risk management, and now teaching college students about it. She teaches about different types of situations that insurance companies and policy holders encounter. A pandemic isn't something she ever had to study until now.

They believe their policies they pay for with insurance companies should cover losses and expenses during the Covid19 pandemic.

Lester explains that Business Interruption Insurance doesn't cover viruses.

"If a business had a fire for example, and couldn't operate. This [interruption insurance] would pay for their net income during the period of restoration while they are rebuilding," Lester said.

She says interruption policies don't include things like bacteria, mold, and viruses. Another avenue businesses are questioning within their insurance policies is the civil authority aspect.

A business can receive help from insurance under the classification of civil authority if they had to close from an order from police or fire because of a situation with their neighbor, Lester said.

"Insurance companies have to be able to predict what their losses will be and make sure that they have money set aside in their surplus to carry and cover projected losses," Lester said." This isn't something that was ever projected."