Pardon The Interruption, Yet Again

Business Interruption Update

Written by Jean Pierre Nogues

In an earlier post, we reported that efforts were underway in Congress and New Jersey to get insurers to pay business interruption losses for the COVID-19 pandemic even in the face of exclusions for causes, such as viruses and other biological agents.  Massachusetts, Ohio, and, most recently, New York have joined in this effort and are now considering legislation to force insurers to pay.  So far, these bills are limited to small employers (maximum of 100 or 150 employees in the state).  Expect substantial resistance from insurers, but we note that after initial resistance to similar efforts after 9/11, a compromise was reached, and insurers did agree to pay some claims.  So stay tuned!

Massachusetts: Senate Bill SD 2888 

New Jersey: Assembly Bill A-3844

New York: Assembly Bill A10226

Ohio: House Bill 589




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