Insurers Worry Virus-Linked Costs May Reach $383 Billion a Month
- Industry group, lawmakers clash over payments to businesses
- ‘Stability of the sector’ is at stake, insurer group claims
A shuttered liquor store in Indianapolis, on March 28.
Photographer: Michael Conroy/AP Photo
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The battle over business-interruption losses is heating up.
Legislators in at least three states -- New Jersey, Ohio and Massachusetts -- have proposed bills to require that insurers pay out for certain claims related to Covid-19. The American Property Casualty Insurance Association is pushing back, arguing that the the costs aren’t covered under current policies and can threaten the stability of the sector. It estimates that business-continuity losses for small firms could total as much as $383 billion a month.