6. Backstop proposed to cover pandemic business interruption
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Consensus is building for a government-backed pandemic risk insurance program as businesses continue to struggle to manage the fallout from COVID-19, and pandemic exclusions spread to a growing number of lines of insurance.
While there are different public-private risk-sharing mechanisms being discussed, one such proposal, modeled on the Terrorism Risk Insurance Act, was introduced by Rep. Carolyn Maloney, D-New York, a senior member of the House Financial Services Committee, in late May.
The story on the introduction of H.R. 7011, the Pandemic Risk Insurance Act of 2020, was the sixth-most-read risk management-related story on Business Insurance’s website in 2020.
Meanwhile, more than two dozen policyholder groups representing hospitality, real estate, retail, film, television and others have formed a coalition advocating for a public-private backstop for pandemic business interruption insurance.
Other proposals include individual insurer plans put forward by Chubb Ltd. and Zurich North America. An alternative taxpayer-funded pandemic backstop plan has also been proposed by major insurance industry groups.
