Update: Pennsylvania Joins States Proposing Legislation to Require Insurers Cover COVID-19
Pennsylvania recently joined New Jersey, Ohio, Massachusetts, New York and Louisiana in proposing legislation that would force insurers to retroactively cover business interruption claims due to COVID-19. On or about April 3, 2020, a bipartisan group of 37 Pennsylvania legislators introduced House Bill 2372, which would require insurers providing coverage for “loss or damage to property, which includes the loss of use and occupancy and business interruption” to include “coverage for business interruption due to global virus transmission or pandemic.” H.B. 2372 would apply to policies in force in Pennsylvania on March 6, 2020, the date Pennsylvania declared a disaster emergency concerning the coronavirus pandemic. Similar to other states, H.B. 2372 would apply to businesses with fewer than 100 full-time employees.
The text of H.B. 2372 states that insurers would be required to indemnify policyholders subject to “the broadest or greatest limit and lowest deductible afforded to business interruption coverage under the insurance policy.” Insurers that pay out business interruption claims under the proposed bill can apply to the Pennsylvania Insurance Commissioner for reimbursement, which would be funded by a “special purpose apportionment” that the Insurance Commissioner would be authorized to collect from all property/casualty insurers doing business in the state. H.B. 2372 has been referred to the Pennsylvania House of Representatives Insurance Committee.
Read details of bills from other states: