Rep. McNamara drafting legislation to extend business interruption insurance for COVID-19 pandemic
STATE HOUSE — Rep. Joseph M. McNamara (D-Dist. 19, Warwick, Cranston) is drafting new legislation that would help businesses hit hard by the COVID-19 crisis by guaranteeing that business interruption insurance would cover their losses regardless of policy language.
“Many businesses — particularly restaurants — have been hit hard by this crisis,” said Representative McNamara, who chairs the House Committee on Health, Education and Welfare. “Now with all non-essential retail businesses being shut down as well, we’re looking at a financial disaster for business people unlike anything that has ever been seen.”
The legislation would make certain that those who have business interruption insurance policies would be indemnified by insurance companies if they suffered a loss related to the COVID-19 pandemic during Rhode Island’s state of emergency.
The bill, which would apply to restaurants, retailers and other businesses, would require insurers to approve claims notwithstanding any virus exclusions or policy requirements that there also be property damage accompanying the business interruption.
“We’re treading new ground here,” said Representative McNamara. “We’re going to have to address what has quickly become a hard-hitting financial nightmare by stepping up and providing some relief to the businesses that are the backbone of our state.”
For more information, contact:
Daniel Trafford, Publicist
State House Room 20
Providence, RI 02903