Tapping Business Interruption Insurance Coverage to Assist Small Business During the COVID-19 Pandemic: Benefits and Drawbacks

Legislation has been introduced in several states that would require insurers to cover business interruption losses due to the COVID-19 outbreak even if the policies exclude losses due to viruses and communicable diseases. What are the advantages and disadvantages of such a law? If policymakers were to proceed with such an approach what design considerations should they keep in mind?

Legislation has been introduced in several states that would require insurers to cover business interruption losses due to the COVID-19 outbreak even if the policies exclude losses due to viruses and communicable diseases. What are the advantages and disadvantages of such a law? If policymakers were to proceed with such an approach what design considerations should they keep in mind?


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