The Upton Group, LLC, a leading national insurance agency that specializes in food delivery insurance, has called upon the federal government to develop an insurance program designed to fill a gap in coverage that the current COVID-19 pandemic has exposed. The gap allegedly affects all businesses but is particularly hard on small businesses and the restaurant industry.

In a press release issued on Tuesday, Upton noted that the standard business owner's insurance policy provides for loss of income, including when that income is lost due to actions by a civil authority. However, the policy typically requires physical damage to trigger coverage. Some argue that a virus can cause physical damage, but as we have learned over the last few weeks, it is generally accepted that a virus does not constitute physical damage that would cause the business owner's policy to respond. And commercial policies typically contain specific exclusions for viruses and bacteria.

In the press release, Upton president Jason Upton noted that the economic losses to restaurants and other small businesses has been and will continue to be significant and that Congress should create a response to the pandemic that is similar to the Terrorism Risk Insurance Act. Such a program would be paid for by each policy holder purchase and could reduce or possibly eliminate the need for a "bailout" in the future, while at the same time guaranteeing restaurant entrepreneurs and employees the protection necessary to survive the next pandemic.