The Role of Business Interruption Insurance in Economic Resilience: A Post-Pandemic Analysis of Policyholder Compensation and Legal ChallengesSafeguarding Financial Data

Abstract

Business Interruption (BI) insurance plays a critical role in economic resilience by providing financial protection to businesses facing operational disruptions. This study examines the effectiveness of BI insurance in compensating policyholders during crises, with a focus on post-pandemic recovery. It analyses key challenges, including ambiguities in policy coverage, legal disputes over pandemic-related claims, and the role of government interventions in supporting affected businesses. The research explores how insurers and policymakers can enhance BI insurance frameworks to improve risk assessment, policy clarity, and claims processing. Additionally, emerging solutions such as parametric insurance models and AI-driven risk analytics are discussed to address future economic uncertainties. By evaluating the lessons learned from the COVID-19 pandemic, this study provides insights into strengthening BI insurance as a tool for fostering economic stability and business continuity in the face of global disruptions.