U.S. Rep. Carolyn B. Maloney (D-NY) recently re-introduced legislation offering protection to businesses amid future pandemics or public health emergencies.
The Pandemic Risk Insurance Act of 2021 (PRIA) would require insurers to make available coverage for insured losses due to covered public health emergencies while also extending availability to parametric non-damage business interruption insurance coverage within commercial property insurance policies or arrange for coverage via an affiliate or a parametric insurance facility.
“There is broad consensus that we need a program like the one created by PRIA – to provide business owners and our economy with better stability in the event of any future pandemics,” Maloney, senior member of the House Financial Services Committee, said. “A forward-looking, public-private partnership like this, one supported by a federal backstop, will help businesses keep their employees on payroll and weather the storm that a public health emergency brings.”
Maloney said Congress needs to be proactive in helping businesses, from the mom-and-pop grocery down the street to larger businesses,
protect themselves from economic losses because of pandemics.
“New York City’s restaurants, bars, and nightclubs were devastated by the COVID-19 pandemic, and the failure of their insurers to pay business interruption insurance claims compounded the economic crisis for small business owners,” Andrew Rigie, executive director of NYC Hospitality Alliance, said. “That’s why we commend Congresswoman Maloney and strongly support her Pandemic Risk Insurance Act to ensure that if the hospitality industry ever faces another pandemic crisis, their insurance policies will pay their claims, which will support their survival, livelihoods, preserve jobs and help sustain the economy.”