Loss of business interruptions from a global pandemic is uncertain due to their scale. Loss of business interruptions (in the US only) from coronavirus is estimated at $ 220- $ 383 billion per month – an amount that the industry could not and should not be expected to cover.
Americans across the country seem to recognize that only the federal government has the capacity to provide the relief that entrepreneurs need. A recent survey initiated by the Future of American Insurance and Reinsurance (FAIR) showed that the majority of Americans believe that the government should bear the financial responsibility for helping companies stay afloat during the coronavirus pandemic.
The survey, conducted by CivicScience, found that only 16 percent of respondents said they believe insurance companies should be responsible for helping companies during the pandemic, and only 8 percent believe that lawsuits against insurers are the best way for companies to secure economic relief. to cover global pandemic risks, so forcing insurers to pay for claims that their policies were not priced to cover would harm all policyholders, FAIR said in a comment on the poll results.
A government-sponsored policy solution can provide immediate relief to struggling business owners and protect insurers' ability to keep promises to policyholders of catastrophic losses, such as damage from forest fires and hurricanes.
Trial lawyers' attempts to retroactively force uninsurable pandemic coverage in business termination insurance contracts are detrimental to policyholders, communities, insurance companies and economic growth. FAIR never completed a more state-sponsored solution for struggling companies in need of relief.
FAIR is an initiative of the Insurance Information Institute and its member companies whose mission is to ensure justice for all customers and protect the industry's long-standing role as a pillar of economic growth and stability.