What is business interruption insurance and how is it related to the Covid-19 pandemic?

After nonessential businesses shut down their operations to slow the spread of the Covid-19 virus in March 2020, many business owners looked to their property insurance policies for relief. Such policies often include business interruption (BI) insurance, which covers income losses if a business is forced to close. Given the shelter-in-place orders issued by state and local governments, BI coverage was assumed by many to apply. For example, Greg Wells, the chief executive of Atlantic Coast Athletic Clubs (ACAC), told the Washington Post: “That’s what you have this type of insurance for. If your business gets shut down, you can continue to employ people.”1