We analyze how pandemic business interruption coverage can be put in place by building on capitalization mechanisms …. The pandemic risk cannot be mutualized since it affects simultaneously a large number of businesses, and furthermore, it … markets. We show that such financial investment allow insurers to offer business interruption coverage in pandemic states …

firms' marginal cost expectations and risk during the COVID-19 pandemic. First, in the early months of the pandemic, firms …, on net, saw COVID-19 largely as a demand shock and lowered their one-year-ahead expectations. However, as the pandemic … capacity disruptions. Second, the balance of unit cost risks shifted sharply over the course of the pandemic, and by the end of …