The Business Interruption Insurance Coverage Act of 2020: The bill has bipartisan support and, if passed, would require each insurer "that offers or makes available business interruption insurance coverage" to "make available, in all of its policies providing business interruption insurance, coverage for losses resulting from . . . any viral pandemic . . . any forced closure of businesses, or mandatory evacuation . . . or . . .any power shut-off conducted for public safety purposes." The bill further provides that any exclusions in force on the date of the enactment of the act "shall be void. to the extent" they exclude the above -specified losses. Policy exclusions may be reinstated if authorized in writing by the insured or if the insured fails to pay any increased premium charged by the insurer for providing the business interruption coverage. Insurers must provide 30 days' notice of the increased premium or reinstatement of the exclusions.
The Pandemic Risk Insurance Act Of 2020 would establish a federal backstop for business interruption and event cancellation losses resulting from a future pandemic or public health emergency declared on or after January 1, 2021. It would not apply retroactively to the instant COVID-19 pandemic. Insurers who do participate would offer pandemic-related business interruption and event cancellation coverage, and they would be reimbursed by a federal backstop for some of their losses. No losses would be paid under the program until aggregate industry insured losses exceed a $250 million aggregate trigger.
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