D.C. Decides Against Retroactive Virus Insurance Coverage

The District of Columbia has nixed legislation that would retroactively eliminate virus exclusions in business interruption policies in a win for the insurance industry.

The D.C. City Council on Tuesday decided not to move forward with a retroactive insurance coverage mandate as part of broader coronvirus relief package for closed businesses and others harmed by the coronavirus pandemic.

The Insurance industry has said that retroactive business interruption coverage for businesses shuttered by Covid-19 could potentially bankrupt insurance companies. Because viruses were excluded from coverage, insurance companies have not collected premiums from policyholders to cover payouts.

“It is gratifying to see ...