The National Retail Federation (NRF) recently called on US Congress to pass a legislation to set up a programme to help businesses obtain insurance coverage for pandemics modelled on one for terrorism insurance following the September 11, 2001, attacks. NRF and 16 business organisations have sent a letter to Congress endorsing the Pandemic Risk Insurance Act.
Congress representative Carolyn Maloney, a senior member of the House Finance Services Committee, plans to introduce the bill soon. A similar bill is planned by Housing, Community Development and Insurance Subcommittee chairman William Lacy Clay.The National Retail Federation (NRF) recently called on US Congress to pass a legislation to set up a programme to help businesses obtain insurance coverage for pandemics modelled on one for terrorism insurance following the September 11, 2001,attacks. NRF and 16 business organisations have sent a letter to Congress endorsing the Pandemic Risk Insurance Act.#
“When businesses couldn’t obtain coverage for acts of terrorism after 9/11, Congress stepped in,” NRF senior vice president for government relations David French said in a statement.
“It’s time for Washington to do the same for pandemics. Retailers and other businesses across the country have seen unprecedented losses related to COVID-19 that weren’t covered under most current insurance policies and won’t be covered if there’s a second wave of the virus next winter. At this point it’s virtually impossible to obtain pandemic coverage for the future, but a federally insured pandemic risk insurance program would provide businesses of all sizes the certainty they need and help rebuild confidence,” he added.
The new measure would require that insurance companies offer policies that cover pandemics but would create a federal backstop programme that would reimburse insurers when claims related to a pandemic or epidemic exceed $250 billion nationwide.
Covered businesses would have to demonstrate that they had suffered significant business interruption with a sharp decline in revenue. Coverage would also be required for large gatherings, ranging from sporting events to concerts to conventions, which are cancelled.
The programme would cover only future pandemics, not claims from the current pandemic, and would be capped at $500 billion.
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