Caruso was ruled out for six to eight weeks after landing awkwardly following "unnecessary and excessive contact" from Allen during the Milwaukee Bucks' 94-90 win over the Bulls.
Allen was adjudged to have committed a Flagrant 2 foul and he was ejected from the game following the hard foul on the Chicago star as he drove to the rim in the third quarter.
An NBA statement read: "Milwaukee Bucks guard Grayson Allen has been suspended one game without pay for having made unnecessary and excessive contact against Chicago Bulls guard Alex Caruso, resulting in substantial injury to Caruso.
"Allen will serve his suspension on Wednesday, January 26 when the Bucks face the [Cleveland] Cavaliers at Rocket Mortgage Fieldhouse in Cleveland, OH."
The Bulls were already without starting guard Lonzo Ball, who is out for up to two months with a knee injury.
Caruso has averaged 8.4 points, 3.9 assists and 3.9 rebounds in 27.7 minutes for the Bulls this season.
Caruso will undergo surgery early next week for a fractured right wrist, having been fouled by Milwaukee's Grayson Allen, who was subsequently ejected.
The former Lakers guard joins Lonzo Ball on the sidelines for the 28-16 Bulls, who have lost five of their past six games.
Caruso's agent Greg Lawrence called Allen's foul, deemed flagrant 2 by the officials, a "cheap shot" given the significant injury it had caused. Bulls head coach Billy Donovan had labelled Allen's act as "dangerous" after the game.
The 27-year-old guard played out the game but admitted his wrist continued to bother him, impacting his shooting.
Needing a victory to keep the series alive, the Bulls confirmed LaVine and Caruso will play no part at Fiserv Forum on Wednesday.
All-Star LaVine misses out a day after he entered the NBA's health and safety protocol, having revealed he was feeling unwell before a practice session.
Fellow guard Caruso took a blow to his face in the second quarter of an emphatic 119-95 Game 4 defeat on Sunday and is going through concussion protocols.
LaVine had led the Bulls with 24 points, 13 assists and five rebounds in a loss that left them trailing the series 3-1.
A depleted Chicago were already missing Lonzo Ball (knee) and Matt Thomas (leg).
On Friday, The Athletic's Shams Charania reported that the league had sent memos to teams advising them to prepare for the possibility of games taking place without fans.
That measure has already been implemented in Italy, where a government decree this week stated that all sporting events are to be played behind closed doors until April 3.
The outbreak originated in China but has now spread across most of the world and there have been over 300 confirmed cases of coronavirus in the United States, where 17 people have died.
It has played havoc with the sporting calendar in many countries and Ligue 1 champions Paris Saint-Germain saw their trip to Strasbourg postponed this weekend, yet one of the NBA's biggest names is not interested in the possibility of playing in empty arenas.
"We play games without the fans? Nah, it's impossible," the Los Angeles Lakers star told reporters.
"I ain't playing. If I ain't got the fans in the crowd, that's who I play for. I play for my team-mates, the fans, that's what it's all about.
"If I show up to an arena and there ain't no fans in there, I ain't playing. They can do what they want to do.
"I ain't ever played the game without no fans, ever, since I started playing ball.
"I don't give a damn, this isn't Europe. They can do what they want to do."
Boston Celtics guard Kemba Walker also hopes it does not come to that for the NBA.
"That would be terrible," he said, as quoted by ESPN.
"That would be boring. They might as well cancel the whole game before that. That would suck.
"But at the end of the day, it is getting serious. I don't know. It would be very weird, though, for sure."
However, James' Lakers team-mate Alex Caruso admitted he would understand if preventative measures were put in place.
"It's a nice privilege to be able to play basketball, but I would like to be able to live many, many years past this," Caruso said.
"If it is a legit thing that needs to be done, do whatever you have to do. People watch on TV way more anyway."
Wembanyama received 98 of a possible 99 first-team votes to add to an impressive list of accolades after his first NBA season.
Rudy Gobert, the NBA’s Defensive Player of the Year, was the only unanimous first-team selection.
Gobert and Wembanyama were joined on the first team by the Miami Heat’s Bam Adebayo, the Los Angeles Lakers’ Anthony Davis and the New Orleans Pelicans’ Herb Jones.
Gobert was voted All-Defence for the seventh time in his career, all on the first team.
Adebayo, long considered a top-tier defender, was selected to the first team for the first time in his career. Even the veterans, however, were appreciative of Wembanyama’s rookie campaign.
“Coming into this league, obviously he had high expectations because he's 7-3 and shooting step-back 3s. I think a lot of people paid attention more to that than what he actually did on the defensive end,” Adebayo said of Wembanyama. “So, for him to get first team, first come around, it's obviously a great accolade for him.”
Wembanyama led the league with 3.58 blocked shots per game, over a block more per game than any other player. The towering Frenchman was also eighth in the league at 10.6 rebounds per game and ranked in the top 25 with 1.24 steals per game.
This was the first season of position-less voting for the All-Defence teams, leading to a strong preference for interior defenders, but perimeter players were well-represented on the second team.
The Chicago Bulls’ Alex Caruso, the Orlando Magic’s Jalen Suggs, the Minnesota Timberwolves’ Jaden McDaniels and Boston Celtics backcourt mates Jrue Holiday and Derrick White were voted to the All-Defensive second team.
The league will announce its three All-NBA teams on Wednesday.
