It’s clear that insurers and policyholders are keeping a close eye on the law as it pertains to pandemics. Clauses in contracts specifically related to viral or biological agents will take center stage in new lawsuits that are sure to spring up after COVID-19 precautions have taken a heavy toll on businesses.

Bloomberg Law explains that lawsuits seeking early declaratory judgements are often sought by insurers trying to determine their expected liability coverage in a given situation. In such suits, a judge determines whether or not it’s expected that an insurer should cover (or not cover) a claim. This ruling happens independently of any financial claims arising from the case.

Though we’re far from opening businesses up to pre-COVID-19 levels, companies are already filing suits against their insurers. For their parts, insurers are searching frantically for escape hatches to avoid covering the myriad claims arising from COVID-19 shutdowns.

Some insurers have already been pursuing the idea that business interruption policies do not cover losses related to viruses or other mass-contagions. Travelers Casualty Insurance Co of America has filed against the firm Geragos & Geragos with this argument in mind. G&G claims to welcome this case, but if Travelers wins, that may cause a ripple effect that winds up devastating policyholders relying on their policies to cover them.

No doubt, all eyes will be on cases of this type.