Kudlow Says U.S. Will Create Liability ‘Guardrail’ Over Virus

Donald Trump’s top economic adviser said the administration will look at limiting liability for businesses over the spread of the coronavirus.

“I think liability reforms and safeguards are going to be a very important part of this,” Larry Kudlow, director of the White House’s National Economic Council, told CNBC in an interview Wednesday morning. “That’s a very important point here -- somebody’s got to defend the businesses.”

Larry Kudlow

Photographer: Stefani Reynolds/CNP/Bloomberg

Trump has indicated the administration is looking to limit liability in cases where workers, or possibly customers, fall ill from the virus. “We have tried to take liability away from these companies,” the president said Monday at a White House news conference. He added that he would seek a legal opinion on the matter but said details of an approach hadn’t yet been discussed.

Speaking to CNBC Wednesday, Kudlow described the potential measure as a “guardrail,” particularly aimed at small businesses.

“That is very important here regarding safeguarding, guard-railing liability insurance lawsuits, which I am quite concerned about,” he said. “Businesses, particularly small business that don’t have massive resources, should not be held liable, should not be held to trial lawyers putting on false lawsuits that will probably be thrown out of court.”

Kudlow said there would be constant monitoring of the virus, although Trump has said it’s up to states to take the lead on testing. Governors have repeatedly sounded the alarm that the U.S. continues to face a widespread shortfall of testing and testing supplies.

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Josh Wingrove in Washington at jwingrove4@bloomberg.net

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Elizabeth Wasserman, Kathleen Hunter

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