The Washington, D.C. City Council helped ensure the continued viability of the District’s insurance marketplace and the insurability of local businesses by declining to impose an excessive and unconstitutional mandate that insurers retroactively cover losses related to the COVID-19 pandemic, the National Association of Mutual Insurance Companies said today.
“It is gratifying to see that common sense prevailed in the D.C. City Council, as members passed coronavirus legislation to aid local residents but removed a business interruption insurance mandate that would have ultimately harmed business policyholders and insurance companies alike in the long run,” said Erin Collins, NAMIC’s vice president, State Affairs. “NAMIC looks forward to working with the council on solutions to provide swift and direct aid to local businesses without upending the commercial insurance marketplace in our nation’s capital.”
Losses stemming from viruses are excluded from standard business interruption insurance policies, meaning that coverage was not included or reflected in the rates paid by policyholders. The measure considered by the council would have required insurers to cover these losses regardless, at an expense estimated to be well beyond the total amount paid by businesses in the District for all property insurance coverage.
Article Posted: 05.05.20
Last Updated: 05.05.20