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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:

New Jersey, Ohio, Massachusetts

New York

Louisiana

© 2022 Wilson ElserNational Law Review, Volume X, Number 105
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About this Author

Paul S. White Partner Insurer Litigation: Coverage/Extra-Contractual Insurance & Reinsurance Coverage Professional Liability & Services

Paul White focuses his practice on complex insurance coverage and bad faith litigation and represents defendants in commercial litigation. Paul's insurance coverage practice includes advising and representing insurers in bad faith litigation and insurance policy disputes, including first-party property policies, general liability coverage, errors and omissions insurance, and media liability insurance. He also advises and represents insurers in subrogation actions on property losses. In addition, Paul has litigated and arbitrated disputes throughout the United States involving domestic and...

213-330-8818
Siobhán A. Breen Associate New York Directors & Officers Liability Insurance & Reinsurance Coverage
Associate

Siobhán A. Breen represents primary and excess professional liability insurers and drafts coverage opinions with respect to complex insurance coverage matters involving directors and officers liability, errors and omissions liability, miscellaneous professional liability, lawyers professional liability, and employment practices liability.

Prior to joining Wilson Elser, Siobhán’s practice consisted of insurance coverage and insurance defense litigation. Siobhán has experience in securities class actions, shareholder derivative actions, cyber/privacy actions, and professional...

212-915-5502
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