California Insurance Commissioner Ricardo Lara has directed insurance companies to submit data to the California Department of Insurance regarding coverage of commercial business interruption related to COVID-19.
It is hoped the data will help state policymakers understand the scope of insured and uninsured losses to businesses in order to help them recover and keep workers employed.
The New York State Department of Financial Services last week instructed insurers to submit details of business interruption policies that have been provided to insureds, as well as the coverage each policy offers regarding COVID-19.
“The coronavirus crisis is devastating small businesses across our state, throwing people out of work and quickly unraveling our economy,” Lara said in a statement. “Although many small businesses maintain commercial multi-peril insurance policies with business interruption coverage, they will have large uninsured losses. We are currently working with the insurance industry and business groups to find creative solutions during this unprecedented crisis to make sure our businesses survive, and we need this data to define the size of the problem.”
Insurance company responses to the data call are due by April 9.
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