Provides relative to business interruption claims due to the coronavirus disease 2019 pandemic
The bill explicitly expands the definition of covered perils in business interruption insurance to include losses due to the COVID-19 pandemic, applying both prospectively and retroactively from March 11, 2020. This retroactive application ensures that businesses can claim lost revenue from policies that were in force during the declared public health emergency. By mandating insurance coverage for pandemic-related disruptions, HB 858 seeks to alleviate financial burdens on smaller enterprises, encouraging their recovery in a challenging economic landscape.
House Bill 858, proposed by Representative Duplessis, addresses business interruption claims resulting from the COVID-19 pandemic and ensures that such claims are covered by insurance policies in Louisiana. The bill mandates that insurers provide coverage for business interruptions caused by global virus transmission or pandemic, specifically referring to the coronavirus disease 2019. This regulatory change aims to support small businesses, particularly those with fewer than 100 full-time employees, which were significantly affected by the pandemic-related shutdowns.
The sentiment surrounding HB 858 tends to be supportive from small business owners and advocates who argue that the bill is necessary to protect livelihoods that were threatened during the pandemic. Lawmakers in favor of the bill see it as a critical step towards ensuring that businesses can recover without suffering undue losses due to their insurance policies' previous exclusions for pandemics. However, some representatives raise concerns regarding the financial implications for insurance providers, suggesting that such requirements could lead to increased premium rates or affect insurance market stability.
Notable points of contention revolve around the financial impact on insurers and the potential for increased premiums to policyholders. Insurers argue that the requirement to cover such claims could lead to broader repercussions within the insurance market, possibly affecting how and what types of coverage are offered in the future. The ongoing debate highlights a tension between the need to provide immediate support to struggling businesses and the long-term sustainability of the insurance industry.