On September 28, the American Action Forum (AAF) hosted an event that convened experts to discuss the urgency of government financial relief for companies whose incomes have suffered from coronavirus pandemic conditions and what challenges lie ahead.
entitled "Assessing Financial Support for Businesses During the Pandemic", the discussion focused on the following key topics:
- The Impact and Success of the Paycheck Protection Program and the Federal Reserve's Emergency Loan Program, in particular the Main Street Lending Program
- Pandemic Insurance Interruption Insurance a federal pandemic program
- Protection of companies from losing excessive costs due to the new area of coronavirus disputes
Among the participants was Insurance Information Institute (Triple-I) CEO Sean Kevelighan . In a discussion with AAF's director of financial services, Thomas Wade, Kevelighan gave an overview of the insurance landscape for business interruptions (BI) in connection with the pandemic. Important highlights include:
- Global pandemics are largely uninsured. "Compared to other covered disasters ̵
- Standard interruption insurance (BI) requires direct insurance for physical damage. "In addition to the enormous scale of a pandemic disaster, a virus does not cause direct physical damage, which is almost always needed to trigger real estate insurance, especially for business and business interruption insurance."
- The lack of a federal system to provide critical financial relief has created an opportunity for litigation attorneys to take advantage of business owners' desperation. "Sensing [business owners’] desperation, court attorneys have unfortunately dusted off their playbooks and seized the opportunity. They sell a false sense of hope to consumers; they fill courthouses with trials that try to rewrite contracts of retroactive use by manipulating languages and interpretations. "retroactively covering pandemic – related losses is detrimental to the insurance industry – a backbone of the economy. " We are in extreme seasons with hurricanes and forest fires. We have also seen incidents of riots and unrest. in particular, this industry was one of the financial sector that managed our previous recession well because of how safely we manage our capital, but in this case it would only take a few months to go bankrupt for the industry. "
More about this discussion and The broader mode of business facilitation can be found in a supplementary report published by Thomas Wade. ion on the ongoing business interruption debate, visit fairinsure.org