In an effort to slow the spread of the novel coronavirus (COVID-19) and to lessen its impact on human health and safety in the U.S., many states and municipalities required “non-essential” businesses to cease or limit their operations. These actions had a significant negative impact on the income of firms across many industries, and some businesses are seeking payment for their losses from their business interruption insurance policies. Insurers and insurance industry trade associations claim that these policies were not designed or intended to cover pandemic losses and that policy features preclude coverage for COVID-19 losses. However, some businesses, attorneys and government officials disagree with this stance and contend that insurers should pay COVID-19 business interruption losses, either voluntarily or involuntarily. In this paper, we discuss provisions contained in the commonly used Insurance Services Office (ISO) business income insurance policy, the different ways in which courts have interpreted the policy’s language, and how these interpretations can affect whether COVID-19 losses are ultimately covered. We further discuss the response of government officials, the insurance industry and policyholders to the issue of coverage, as well as proposed actions that may result in the payment of claims stemming from both COVID-19 and future pandemic-related losses.