All Perils Policies: Is COVID-19 An Insured Peril?

As the worldwide pandemic continues to rage on, losses faced by businesses increase without any certainty as to when they might end. Such expansive loss has raised many questions for insurers facing potential claims for coverage. One such question is whether "all peril" or "all-risk" policies extend to provide pandemic coverage?

Typically, business interruption insurance is part of a policy issued on either an "all perils" basis or a "named perils" basis. An all perils policy covers every fortuitous risk to an insured, subject to the conditions and exclusions contained in the policy. A named perils policy contains a list of specifically insured events, thereby excluding any peril not listed.