US Federal Business Interruption Legislation Update: Federally Funded or Private/Public Partnership?

    View Author June 2020

    Two recent announcements in Washington DC highlight a significant divide in public policy regarding the appropriate level of the federal government‘s involvement in future business interruption (BI) losses resulting from pandemic or contagious disease events. This alert summarizes (1) legislation introduced this week that would create a private/public pandemic risk insurance program and (2) a proposal announced last week by three large insurance trade associations for a new type of federal insurance program that would provide federal payments to businesses impacted by BI resulting from a national pandemic.