Navigating the Impact of COVID-19 on Small Commercial Businesses and Insurance Companies, and a Call to Action for Future Communicable Disease Outbreaks

The short-term and long-term effects of Covid-19 have caused many small commercial businesses to face financial hardships, loss of employees, and even closures for entities that were already experiencing low profit margins. Distraught with their businesses suffering, owners turned to their primary insurance companies to receive compensation through their business interruption policies. However, most insureds were upset when they discovered that their insurance plans did not include communicable diseases and pandemics as a covered peril. This led to many small businesses battling these issues in the courts and fighting for insurance companies to provide financial assistance to them during this tragic time. This paper provides an overview of the insurance industry and describes the formation of small businesses. The relationship between small commercial entities and the pandemic will be described and analyzed. It will then provide background information on existing government insurance programs, and will conclude with a call to action for the government and insurance companies to be prepared for the next communicable disease outbreak