06/01/2020

Pandemic Risk Insurance Act Introduced in House

The act offers a critical solution for associations

Last week, ASAE endorsed a bill introduced on May 26 by Rep. Carolyn Maloney (D-NY) to create the Pandemic Risk Insurance Program, a system of shared public and private compensation for business interruption losses resulting from future pandemics or public health emergencies. The COVID-19 pandemic has caused severe financial strain on America’s associations resulting from cancelled meetings, conventions, and tradeshows not covered in existing insurance policies.

Creation of a Pandemic Risk Insurance Program is one of ASAE’s primary asks of Congress to ensure future event cancellations resulting from a pandemic are covered.

Maloney’s bill (H.R. 7011) would require insurance companies to offer business interruption insurance policies that cover pandemics and ensure there is sufficient capacity to cover these losses and bolster the economy in the event of a future pandemic. Much like the Terrorism Risk Insurance Act, enacted shortly after the terrorist attacks on 9/11, the federal government would serve as a backstop to maintain market stability and to share the burden alongside the private insurance industry. ASAE looks forward to building support in Congress and among stakeholders for this important legislation.

Please select this link to read the complete article from Associations Now.