By Bob Katzen
The bill (S 2655) requires insurance companies to cover businesses’ costs if they close down due to the COVID-19 pandemic. According to the bill’s sponsor Sen. Jamie Eldridge (D-Acton), the bill would also allow insurers to apply for reimbursement for the costs through the Division of Insurance, and then allow the Division of Insurance to reimburse licensed insurers that sell business interruption coverage.
“Business owners are in a financial crisis as a result of the Coronavirus pandemic, while facing the requirement to pay rent, various business costs, and employee wages,” said Eldridge. “Many of these businesses purchased business interruption insurance, yet in speaking to their insurance agents, have confirmed that this insurance does not cover virus pandemics.”
“Since this crisis began, I have been supporting every measure possible to expand resources and coverage for businesses and individuals facing financial insecurity,” said co-sponsor Sen. Patrick O’Connor (R-Weymouth). “This legislation is exactly the type of policy we need right now to preserve our vulnerable industries, and I hope we can quickly move it forward in the legislative process.”