With U.S. insurance companies facing criticism over their response to the coronavirus outbreak, three industry groups on Thursday proposed putting the Federal Emergency Management Agency (FEMA) in charge of a taxpayer-backed program to protect businesses from revenue losses during future pandemics.
A close sign is seen in the parking lot of a closed business as Ohio implements phase one of reopening dentists, veterinarians and elective surgeries, following the outbreak of the coronavirus disease , in Columbus, Ohio, U.
S., May 01, 2020. REUTERS/Megan Jelinger The program would allow businesses to buy “revenue replacement assistance” of up to 80% of payroll and other expenses, the groups said. Insurers announced the plan after facing lawsuits, political pressure and criticism from customers with business interruption policies over not covering their financial hardships due to the coronavirus pandemic. While these policies may cover revenue losses from lightning strikes or cars crashing into buildings, they either exclude or do not specifically cover a pandemic, despite the business interruption it causes.Many insurers want future pandemic business coverage to be backed by the U.S. government, but are at odds over how to execute a plan. Some want a program similar to the government-supported commercial terrorism products that followed the attacks of Sept. 11, 2001, and require insurers to pay part of the claims, before U.S. taxpayers take over. “We think that a program where policyholders, insurers, and the government each have risk will create the right economic incentives so that we mitigate the impact of the next event and not just look to the government to finance it,” said John Doyle, president and chief executive officer of insurance broker Marsh, which is lobbying for a terrorism-type program. But the groups oppose a cost-sharing plan because pandemics pose a more wide-reaching, long-running risk than a terrorism incident. Under their proposal for a fully taxpayer-funded plan, payments would be automatically triggered after a U.S. president declares a “viral emergency,” provided businesses bought the protection at least 90 days earlier, they said.
Please follow us on Google to support us United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
S&P Futures Rise; Global Stocks MixedU.S. stock futures rose, while international markets were mixed, as investors continued to weigh the prospects for economic recovery from the coronavirus pandemic.
Read more »
Sweden resisted a lockdown, but its banks are vulnerable to credit losses, central bank warnsDespite resisting a lockdown on its citizens and businesses amid the coronavirus pandemic, Sweden's banks remain vulnerable to credit losses, the country's central bank warned on Wednesday.
Read more »
Rite Aid COO on the future of healthcare amid the coronavirus pandemic - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Read more »
The future of education: The positives and negatives of the pandemic - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Read more »
One-fifth of Americans fear they can't pay June rent or mortgage, federal survey findsNationally, more than a fifth of adults surveyed reported they had slight or no confidence in their ability to pay their rent or mortgage in June.
Read more »
The Covid-19 pandemic further divides the USThe pandemic has caused even greater polarisation in the US and is turning out to be a defining period for Trump's future.
Read more »