PIANY opposes business interruption bill

Sen. Andrew S. Gounardes, D-22, introduced S.8853—a companion bill to A.10837, introduced at the request of Assemblyman Robert Carroll, D-44, a few weeks ago. The bill would require business interruption insurance to cover disease outbreaks, and would apply to all business interruption claims filed by insureds, and all policies or contracts that were issued, modified, altered or amended on or after the effective date. The bill is problematic because it would prevent insurance carriers from using the virus or pandemic exclusions to deny coverage for business interruption, which would alter existing insurance contracts. This sets a dangerous precedent that the government could alter contracts if it does not agree with the terms. PIANY is talking with state legislators about the negative effects bills like this one could have on the insurance industry; and it has successfully prevented the bills for moving through the legislative process. PIANY will continue to monitor and contact legislators to ensure these types of bills do not gain traction. To monitor the status of this bill, see the PIAdvocacy bill tracker. To keep you updated on the latest news, see the PIANY coronavirus resource page and be sure to read your PIANY publications. Recent updates include: Cuomo adds Rhode Island to list of states and territories from which travelers must quarantine for 14 days upon arrival in New York, removes Washington, D.C., and Delaware; Cuomo updates New Yorkers on state’s progress during COVID-19 pandemic.