It’s too early to dive deep into this, but be aware it may develop:
Lawmakers in neighboring states have drafted bills calling for insurers to pay claims for business interruption due the the COVID-19 slowdown. It is excluded (see our post of March 17th) by pretty much all insurance policies. If coverage is provided, the number and severity of claims would likely wreck the insurance industry as we know it. Insurance companies haven’t collected premium for it nor purchased reinsurance to help pay for losses. Future policies would have to charge far more to include claims for risks not currently covered, as they’ll be at risk of governmental edict to pay. It could also have devastating effects on contract law as the existing contract would be subject to whatever the government wants it to say, rather than what the parties to the contract agreed to.
There is only one scenario that I see that this just might work: Insurers taking and administering the claims but some administrative expenses and the actual losses being paid for by the state governments.