Legislation would allow for temporary changes in business insurance

A state Senate bill would allow for temporary changes in business interruption insurance that would allow small businesses the ability to make claims for losses and damage related to the COVID-19 pandemic.

Pennsylvania’s 1.1 million small businesses employ more than 2.5 million people. On March 19, Gov. Tom Wolf ordered all nonlife-sustaining businesses close for public health reasons, and the order is expected to be extended through at least May 8.

The closure has resulted in many businesses without any additional financial resources. Additionally, many business insurance policies do not cover damage or property loss caused by a virus.

“We’re asking all of the parties to come to the table with the legislature and work out a solution that is fair to business owners who purchased interruption insurance and keeps the insurance industry solvent,” said Sen. Anthony Williams (D-Delaware/Philadelphia), who cosponsored the bill, said. “It’s important that businesses have the ability to make payroll and meet other financial commitments so insurers have customers in the future, and the government, at all levels, needs to facilitate that.”

Sen. Vincent Hughes (D-Philadelphia/Montgomery) is a cosponsor.

The bill has bipartisan support as well as the support of the Pennsylvania Restaurant and Lodging Association and small-business owners.