Proposed Legislation Would Cover Pandemic Business Interruption
H.R. 7011, the Pandemic Risk Insurance Act of 2020 (PRIA), would create the Pandemic Risk Reinsurance Program, a system of shared public and private compensation for business interruption losses resulting from future pandemics or public health emergencies.
The legislation was introduced by Congresswoman Carolyn Maloney and wouldo ensure that there is sufficient capacity to cover losses and protect the U.S. economy in anticipation of a resurgence of COVID-19 and future pandemics. Like the Terrorism Risk Insurance Act (TRIA), the federal government would serve as a backstop to maintain marketplace stability and to share the burden alongside private industry.
"Nonprofits in New York have lost countless millions of dollars in revenue, thousands of staff, and even shut down due to the COVID-19 pandemic, and nonprofits are consistently denied insurance claims for these losses. None of us know when this pandemic will end or when another will begin,” said Chai Jindasurat, Policy Director at Nonprofit New York, an association of more than 1,500 nonprofits. “
“9/11 exposed the need for terrorism risk insurance, and since the impact of coronavirus on the travel industry has been nine times that of 9/11, it is very sensible to offer a similar backstop for pandemics,”said Tori Emerson Barnes, U.S. Travel Association Executive Vice President for Public Affairs and Policy. “This measure will go a long way in giving businesses the confidence they need to reopen, which will be vital to a rapid, robust and sustained economic recovery.”
In addition to those named above, PRIA is endorsed by; Marsh & McLennan Companies, Retail Industry Leaders Association, The Council of Insurance Agents & Brokers, The Travel Technology Association, the National Multifamily Housing Council, Partnership for New York City, International Council of Shopping Centers, National Apartment Association, International Franchise Association, RIMS, the Risk Management Society, CCIM Institute, Association of Woodworking and Furnishing Suppliers, Association of Marina Industries, School Social Work Association of America, National Waste & Recycling Association, National Commission on Correctional Healthcare, National Career Development Association, Tile Council of North America, Modular Building Institute, American Jail Association, World Floor Covering Association, Young Audiences Arts for Learning, American Case Management Association, The Minerals, Metals & Materials Society, Institute of Scrap Recycling Industries, Institute of Real Estate Management, International Health, Racquet & Sportsclub Association and National Wooden Pallet & Container Association.