Multiple States Expand Business Interruption Coverage

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With the Coronavirus ravaging the economy, many businesses are starting to lose money or even close-up their shops. As a result, they are starting to need business interruption coverage that normally activates in the event of a natural disaster.

Several states have proposed legislation to expand said coverage if it’s not already in an insurance policy. Ohio for example under House Bill 509, is requiring that every policy against a loss or property damage that covers a business in the state must now “be construed to include among the covered perils under that policy, coverage for business interruption due to global virus transmission or pandemic during the state of emergency.” This bill only covers employers of less than 100 people and employees must work at least 25 hours a week. In the state of Massachusetts, State Directive 2888 expands on this and requires every policy must have coverage related to the virus if they employ less than 150 and would no longer be required after the state of emergency is lifted.[1]

Many states are considering adding exceptions to allow for the sudden interruptions caused by the lockdowns caused by Coronavirus. Check what your states are doing and consult your policy to understand how your company is protected.


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