Bill would up pressure on insurers to cover business interruptionPosted On: Apr. 9, 2020 2:03 PM CST
South Carolina lawmakers have become the latest to introduce a bill that would force insurers to retroactively cover business interruption claims due to COVID-19.
The bill would also prevent insurers from denying claims for loss of use and occupancy or business interruption arising from the virus.
S.B. 1188 would amend the state’s 1976 property insurance code to require insurers providing coverage for loss of use and occupancy or business interruption to cover claims directly or indirectly resulting from the global pandemic, “including all mutated forms of the COVID-19 virus,” the bill states.
The bill, which was sponsored by Democratic Sens. Marlon Kimpson and Bradley Dunn, and Republican Sen. Sandra Senn, was introduced Wednesday and would apply to businesses with fewer than 150 full-time employees.
It follows similar bills introduced in Pennsylvania, Louisiana, New York, Ohio, Massachusetts and New Jersey.
Insurance groups maintain that any action to mandate coverage for pandemics could threaten the solvency of the property/casualty industry.
More insurance and risk management news on the coronavirus crisis here.