A campaign led by “the world’s richest chefs and a celebrity attorney” to retroactively rewrite US business interruption policies is unconstitutional and would threaten the industry’s ability to pay covered claims, the New York-based Insurance Information Institute says.

“The current government shutdown orders do not trigger the vast majority of standard business interruption policies,” Non-Resident Scholar and Law School Professor Michael Menapace said last week.

“The Federal Government is the only entity with the financial resources to help businesses during a widespread global pandemic.”

Lawyer John Houghtaling, a partner in the firm that took action against Big Tobacco in the 1990s, is working with high-profile restaurant owners over the issue under the Business Interruption Group banner.

“We are banding together to launch BIG legal action in every state against insurers who deny funds for civil authority coverage,” Mr Houghtaling says on the group’s website. “Immediate payment is due on policies that do not contain a virus exclusion.”

The institute says federally backed government solutions are available and more are expected.

More than 40 trade organisations, including those representing insurers, restaurants and other hospitality industries are supported a proposed federally financed program known as the COVID-19 Business and Employee Continuity and Recovery Fund

“We hope the frivolous legal actions of a few will not distract from the urgent needs of American small business,” the institute says.