The New York State Assembly has introduced a bill (A-10226) “requiring certain perils be covered under business interruption insurance during the coronavirus disease 2019 (COVID-19) pandemic.” Assembly Bill A-10226 would require every property policy providing business interruption and loss of use coverage to include among the policy’s covered perils coverage for business interruption during the COVID-19 declared state emergency. Coverage required by the bill would include any loss of business or business interruption for the duration of the declared state of emergency, subject to the applicable policy limits.
The bill applies to policies issued to insureds with less than 100 eligible employees. "Eligible employee" means a full-time employee who works a normal work week of 25 or more hours.
Insurers which make business interruption payments pursuant to this bill may seek reimbursement from a fund established by the New York Superintendent of Financial Services that will be financed by a “special purpose apportionment” collected from insurance companies writing in New York.
Currently, A-10226 has been referred to the Assembly Insurance Committee for further consideration. The bill is sponsored by Assemblyman Robert Carroll. If approved, the New York bill shall take effect immediately, and be retroactive to March 7, 2020.
