Bixby Restaurant Owner's 'Business Interruption' Insurance Not Covering Impact From COVID-19 Pandemic

A Bixby restaurant owner is worried after he said his business interruption insurance won't cover the cost of impact from the coronavirus (COVID-19) pandemic. 

"I was told no. That business interruption is for physical damage," Michael Minden said. 

Minden has owned the restaurant for 15 years with his wife. He said he made a difficult decision to shut down temporarily to ensure the safety of employees and customers. 

Minden said he has the insurance to cover times where income may not be flowing in, but the company said they couldn't cover the cost of this situation. 

Oklahoma Insurance Commissioner Glen Mulready said the coverage is supposed to kick in for loss of income.

"For coverage to kick in there needs to be a loss that is covered by your base policy, fire, hail, or tornado - those type of claims," Mulready said. 

Mulready said that for the most part, the policy excludes coverage for pandemics. 

Mulready said since the insurance companies weren't prepared to cover the business interruption insurance, paying for the coverage now could bankrupt them. 

Tulsa attorney Kevinn Matthews said COVID-19's propensity to stick on surfaces could mean it qualifies as physical damage.

"Consult a law firm or a lawyer who has the expertise to help put together the claim," Matthews said. 

Minden said he is thankful for the federal small business loans so he can keep paying his employees and hopes to get back to work soon. 

Commissioner Mulready encourages businesses to ask their insurance providers what they're doing to help.