Retailers support legislation that would offer support for losses due to pandemics
Legislation has been proposed that would establish a federal program to help businesses obtain insurance coverage for pandemics.
Developed with input from the National Retail Federation, the Pandemic Risk Insurance Act is modeled on the Terrorism Risk Insurance Act, which was enacted after the attacks of September 11, 2001, made it difficult for businesses to obtain insurance coverage against acts of terrorism.
“Congress must take swift action on a solution to provide all businesses protection against future pandemic risks,” said Leon Buck, VP for government relations, banking and financial services, NRF. “The development of a public-private partnership to address this risk will provide certainty for businesses and organizations of all sizes and will ensure that we can meet future pandemic events with greater resilience.”
Buck spoke as part of a virtual news conference held Tuesday by House Financial Services Committee member Representative Carolyn Maloney, D-N.Y., to announce the introduction of the Pandemic Risk Insurance Act.
“This legislation is the cornerstone of a proactive approach in managing the risk and impact of a pandemic or epidemic in the future,” Buck said.
The new measure would require that insurance companies offer policies that cover pandemics but would create a federal backstop program that would reimburse insurers when claims related to a pandemic or epidemic exceed $250 million nationwide. Covered businesses would have to demonstrate that they had suffered significant business interruption with a sharp decline in revenue. Coverage would also be required for large gatherings, ranging from sporting events to concerts to conventions, that are canceled. The program would cover only future pandemics, not claims from the current COVID-19 pandemic, and would be capped at $750 billion.
NRF believes coverage against pandemics is crucial as retailers seek to renew leases, invest in real estate, order inventory, plan for capital improvements and hire or re-hire workers in coming months.