Congressman Brian Fitzpatrick (R-PA) introduced H.R.6497, the Never Again Small Business Protection Act, on April 24, 2020. The legislation would require that business interruption insurance policies provide coverage for losses that stem from any federal, state, or local government-ordered business shutdown following the declaration of a national emergency. The legislation applie going forward.
Many businesses that currently hold business interruption insurance have recently learned that their policies do not cover government-ordered business shutdowns caused by a national emergency, such as the current COVID-19 pandemic. This lack of coverage has had an extremely negative impact on the businesses under the assumption that the insurance policies they have been paying premiums on for years would provide support during this crisis.
Provisions such as those included in H.R.6497 are likely to be considered as Congress works on future Coronavirus relief packages.