The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by LG Sullivan.
DIGEST
SB 477 Original 2020 Regular Session Ward
Proposed law requires every policy of insurance in force in this state on March 11, 2020, and
thereafter insuring against loss or damage to property that includes the loss of use and occupancy and
business interruption to be construed to include coverage for business interruption due to the threat
posed by COVID-19 as provided in Proclamation Number 25 JBE 2020, declaring the existence of
a statewide public health emergency. Requires the coverage to indemnify the insured, subject to the
limits of the policy, for any loss of business or business interruption. Applies retroactively to March
11, 2020, to losses incurred during the declared state of emergency.
Proposed law requires every policy of insurance covering business interruption delivered or issued
for delivery in this state on and after August 1, 2020, to include a notice of all exclusions on a form
prescribed by the commissioner of insurance. Requires the form to be provided by the insurer and
signed by the named insured or his legal representative.
Proposed law provides that the signed form shall be conclusively presumed to become a part of the
policy or contract and creates a rebuttable presumption that the insured knowingly contracted for
coverage with the stated exclusions.
Proposed law applies to any property insurance covering any business interruption that occurs in La.
and involves a La. business.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 22:1272 and 1273)