Bloomberg Law
May 28, 2020, 4:48 PM

House Democrats, Insurance Industry Face Off on Pandemic Plans

David Hood
David Hood
Reporter

House Democrats and insurance groups have revealed separate plans for pandemic-related business interruption insurance and neither approach is generating much enthusiasm among Republicans.

The Democratic approach is modeled after an existing program that insures companies against domestic terrorism attacks, while the industry groups drew up a plan that would function more like a fund than insurance. Each aims to cover business losses related to the Covid-19 pandemic.

Many companies purchase business interruption insurance designed to cover losses due to closures because of natural catastrophes. Most existing policies include language excluding closures due to communicable diseases or other health-related concerns, leaving ...

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