Insurers: "Sorry, No Coverage for COVID"

Manufacturers and distributors up and down the supply chain have been disappointed to learn that their insurance coverage does not protect them from the coronavirus. “Pandemic outbreaks are uninsured because they are uninsurable,” said David A. Sampson, president and CEO of the American Property Casualty Insurance Association (APCIA), the trade group for home, auto and business insurers.

Prudent steel suppliers often carry business interruption insurance designed to replace income that is lost if the business is forced to shut down due to an unexpected event such as a fire or natural disaster. This type of insurance also usually covers operating expenses, a move to a temporary location, payroll, taxes and loan payments. For business interruption losses to be covered, there typically must be physical loss or damage to property.