House Democrats Mull Insurance Program for Virus-Stricken Companies

House Democrats are proposing a federal reinsurance program designed to widely shield large and small businesses against the ravages of the coronavirus pandemic.

The program, still in the early stages of negotiation, would mirror an existing federal backstop for terrorism risk created in the aftermath of 9/11, and could be part of the next congressional relief package, according to a draft proposalcirculated by House Financial Service Committee Democrats.

The need for a program is acute as lawsuits stack up across the country between shuttered businesses and insurers over whether existing business interruption insurance policies have virus and bacteria-related ...