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SCGM says that the policy provides coverage because Covid-19 is a variant of SARS.
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The state has joined New York, Ohio and Massachusetts in considering the bill.
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The estimate comes as some US states consider proposals to force insurers to cover all BI claims.
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The executive was head of casualty for North America and London for Axis Reinsurance.
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Prime Time Sports Grill says its insurance claim was denied on 23 March.
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The president recognised that some policies have virus exclusions while others do not.
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Some programmes also renewed with Covid-19 exclusions.
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The entities allege that Wisconsin-based Society Insurance should provide coverage for "necessary suspension" of business.
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Five trade bodies sent a letter to senior politicians including President Donald Trump.
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Steve Bitar worked at Citizen for more than 16 years and joins the Floridian property insurer on 20 April.
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The Ohio and Massachusetts proposals come as the APCIA estimates small business losses due to Covid-19 at up to $383bn a month.
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The restaurateur argues that insurance should pay for contamination and BI losses.