Rockford Sun

Small businesses in Rockford shut down by the coronavirus pandemic found that their business interruption insurance may cover acts of God like tornadoes and other natural disasters but it doesn't  cover viral outbreaks.

“The insurance companies have a squirrel clause that concerns viruses and that’s what is screwing everyone,” Michael Leifheit, owner of the Irish Rose Saloon, told rrstar.com.

Leifheit tried to keep the Irish Rose open for takeout service after the March 15 order to close bars and dine-in restaurants. But he told rrstar.com that he was losing money and had to close.

He’s applying for an emergency bridge loan program to pay his bills. In a few months he anticipates Small Business Administration federal disaster relief loans will be available at better interest rates.

“I’ve exhausted some of my personal financial savings already and I’m going to have to do some more,” Leifheit told rrstar.com.

Matt Riplinger, president of Broadmoor Insurance Agency, said business interruption insurance covers losses resulting from physical damage. He told rrstar.com he doesn’t know of any insurance that covers losses from a pandemic – or war.

Patrick Alberto and his wife still offer lunch and dinner takeout service from Octane Interlounge. They’ve cut hours and laid off six staff members and now the couple does most of the work.

Business interruption insurance won’t cover his losses, either. But Alberto told rrstar.com he hasn’t lost hope. He hopes to secure loans for his business until the crisis ends.

Alberto remains optimistic, but he said even those who survive won’t come out unscathed.

“Most people won’t even come back from this — some businesses will close for good,” he told rrstar.com