Bill would make it easier for businesses to file insurance claims

A bill referred to the state Senate Banking and Insurance committee earlier this year would help businesses file claims on business interruption insurance policies.

These policies replace income lost because of a disaster. Many Pennsylvania small businesses have been denied coverage for the COVID-19 pandemic. Senate Bill 1127 would clarify the law to apply to businesses with coverage that contains a “civil authority” clause. The clause provides protections when government action prevents the business from operating.

The normal claims review process would be maintained in the bill, but businesses would not receive additional payment beyond existing coverage.

Members of the small business community recently met virtually to discuss the legislation with state Sens. Pam Iovino (D–Allegheny & Washington), who introduced the bill, Jim Brewster (D–Allegheny and Westmoreland), Vincent Hughes (D–Philadelphia & Montgomery), Judy Schwank (D–Berks) and Sharif Street (D–Philadelphia).

“As President/CEO of the Pittsburgh Airport Area Chamber of Commerce, one of the largest regional chambers in the Commonwealth, I feel compelled to advocate and to support legislation that is specifically designed to add a ‘lifeline’ to our small business community devastated by the pandemic,” said Chris Heck. “Financial relief should not be denied to those due to ambivalent insurance policy language.”

A hearing on the bill has yet to be scheduled.