Posted on March 27, 2020
As you are probably aware, the language in most business insurance policies does not provide coverage for business interruption and loss of revenue due to the consequences of the current COVID-19 pandemic.
However, we want to bring to your attention proposed legislation in the Commonwealth of Massachusetts Legislature. Bill SD.2888, “An Act Concerning Business Interruption Insurance,” would require insurance companies to process and pay such claims in the current circumstances, with the Commonwealth then reimbursing insurance companies for any claims paid.
The approach proposed in SD.2888 marshals the insurance industry’s robust claims processing structure so that business interruption claims can be processed quickly and efficiently.
You can learn more about SD.2888 by clicking on the following link: https://malegislature.gov/Bills/191/SD2888
For those businesses seeking additional relief, the Commonwealth of Massachusetts website includes important information about the U.S. Small Business Administration’s (SBA) Economy Injury Disaster Loan (EIDL) program, which will offer low-interest federal disaster loans to small businesses suffering substantial economy impact as a result of the COVID-19 pandemic. This program is now available to businesses in Massachusetts as a result of Governor Charlie Baker’s state-wide disaster declaration of March 17th.