Who pays? Who pays for the pandemic when insurance companies will not? That's the question delved into by Fortune 's Jeff John Roberts, who writes: "As many businesses are belatedly discovering, most policies contain language requiring the loss to be a consequence of physical events. Interruptions caused by 'civil authorities,' seemingly including stay-at-home orders, are also often covered. Even in those cases, however, businesses must still typically experience physical damage, either to their buildings or nearby, to trigger coverage…These hurdles haven’t stopped enterprising lawyers for policyholders to seek loopholes." Fortune
Wars and acts of God are not covered by some insurance policy.and insurance companies can just bankrupt and not honor the contracts. That was the risk of buying put options, the put seller or guy insuring is out of business. that is known as counter-party risk. These put sellers are asking 10% of the underlying stock for selling insurance. for OTM puts. Investors don't buy puts.