Business Interruption – New Proposed Legislation in Massachusetts

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:

We encourage you to contact your state representatives to share your views about this important piece of legislation. A complete list of Massachusetts legislators and their contact information is available at

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.

For additional details about the SBA’s EIDL program, visit:
From all of us at Aronson Insurance, we hope you and your families are remaining safe and healthy. We are here to help if there is any assistance we can provide.

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