Closed signs on a fast food restaurant on April 24 in New York City. Photo: Alexi Rosenfeld/Getty Images
Restaurants, casinos and barbershops are suing insurers in an attempt to regain losses caused by staying closed through stay-at-home orders, AP reports.
Why it matters: The survival of thousands of businesses are on the line if insurers refuse to pay — and big-name insurance companies risk massive financial hits if they accept the millions of claims.
The big picture: The $349 billion cap for small business loans for the coronavirus stimulus was reached last week, taking less than two weeks to run out.
- Texas and California small businesses — and the construction industry — are getting the biggest chunk of money set aside for struggling small firms so far, Axios' Courtenay Brown reported last week.
- President Trump signed a $484 billion interim relief bill on Friday t0 add another $310 billion to the small-business Paycheck Protection Program (PPP). Chamber of Commerce president Suzanne Clark told Axios that the replenishment will not be enough to sustain small businesses.
What's next: If the coronavirus caused "direct physical damage" in or near a business, small business owners have a greater chance of success in their case against insurers, per AP. But proving that the virus was on the premises could prove challenging for plaintiff attorneys.
- "It’s a question courts haven’t definitively answered," AP reports.
Go deeper: How many big companies got PPP loans