Navigating the Complexities of Business Interruption Insurance Amidst the Pandemic

Business Interruption Insurance and Liability Issues

As governments begin to gradually reopen the economy, business interruption insurance and liability issues remain at the forefront. The American Property Casualty Insurance Association estimates that local businesses could claim losses of hundreds of millions of dollars each month, a figure that dwarfs the premiums for all relevant commercial property risks in the key insurance lines for D.C., estimated at $16 million a month.

D.C. Business Interruption Insurance Move on Hold

A measure that would make it easier for small businesses in Washington, D.C. to claim coronavirus-related damages under business interruption insurance policies is on hold after six of the 12 D.C. Council members raised concerns about its legality and the costs it could impose on insurers. Council Chairman Phil Mendelson struck the language from a broader pandemic emergency bill to allow for more debate.

Care Homes Seek Shield From Lawsuits

Faced with 20,000 coronavirus deaths and counting, the nation’s nursing homes are pushing back against a potential flood of lawsuits with a sweeping lobbying effort to get states to grant them emergency protection from claims of inadequate care. At least 15 states have enacted laws or governors’ orders that explicitly or apparently provide nursing homes and long-term care facilities some protection from lawsuits arising from the crisis.

In conclusion, businesses and care homes are facing unprecedented challenges as they navigate the complexities of insurance and liability during the pandemic. It is crucial for policymakers to balance the needs of businesses and insurers while ensuring that adequate protections are in place for vulnerable populations. For businesses, it is recommended to review their insurance policies thoroughly and seek legal advice to understand their rights and obligations. For care homes, ensuring robust infection control measures and advocating for legislative protections can help mitigate risks.