As the COVID-19 pandemic continues to decimate the financial stability of so many small firms, including many in the long-term care industry, efforts are afloat to better protect small businesses in future.
Several business groups have been throwing their support behind a pandemic insurance bill modeled after a post-9/11 law that created a federal backstop for claims related to acts of terrorism, according to a report Monday by The Hill. The Pandemic Risk Insurance Act would require insurance companies to offer business interruption insurance policies that cover pandemics. The measure also would create a Pandemic Risk Reinsurance Program to ensure that sufficient capacity exists to cover these losses and protect the U.S. economy against a coronavirus resurgence and possible pandemics in the future.
Introduced in May by Rep. Carolyn Maloney (D-NY), the bill is modeled after the 2002 Terrorism Risk Insurance Act, which received broad bipartisan support and was reauthorized in 2019.
Unlike the COVID-19 liability shield sought by Senate Republicans, the House measure would not be retroactive, Maloney said. Several business groups, including Nareit, the National Multifamily Housing Council and several insurance industry groups, have expressed support.