The Washington PostDemocracy Dies in Darkness

Hard-hit restaurants, gyms and other businesses are battling insurers over the coronavirus, sparking a new Washington lobbying war

Hundreds of billions of dollars are at stake, and some groups have asked Trump to intervene.

April 22, 2020 at 1:23 p.m. EDT
A store stands closed on April 21 as the coronavirus keeps financial markets and businesses mostly shuttered in New York City, which has been the hardest-hit city in the United States. (Spencer Platt/Getty Images)

A multibillion-dollar standoff between the nation’s leading insurers and the restaurants, hotels, gyms and theaters that purchase their policies has spilled into some of the most powerful corridors of Washington, as both sides clash over who should foot the sky-high costs of the coronavirus outbreak.

The battle hinges on whether insurance providers should have to pay claims to companies that have shuttered unexpectedly as a result of the deadly pandemic. The dispute has attracted the attention of President Trump, triggered lawsuits in courtrooms nationwide and touched off a massive lobbying blitz on Capitol Hill, where some insurers say the federal government instead should be the one providing financial help to those that need it most.