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Pennsylvania House of Representatives
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House Co-Sponsorship Memoranda

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House of Representatives
Session of 2019 - 2020 Regular Session


Posted: March 23, 2020 10:59 AM
From: Representative Thomas L. Mehaffie, III
To: All House members
Subject: Providing Assistance for Business Interruptions due to COVID-19


As a direct response to the COVID-19 pandemic that is placing tremendous economic hardship on businesses throughout the Commonwealth, I intend to introduce legislation that will provide economic assistance in a manner that will mirror the process business undertake to file an interruption insurance claim.

Business interruption insurance is commonly underwritten into many insurance policies to assist in the event of actions out of the control of the business owner, such as a tree falling on the location. When these types of actions cause physical damage to the business structure and force the halt of business operation, business owners may file a claim with their insurance provider to recoup lost income or for costs associated with relocating the business. With the shocking announcement made recently by the Governor to close all ‘non-essential businesses’ until further notice, it was brought to my attention that this line of insurance does not cover such governmental proclamations or pandemic outbreaks. Through no fault of their own nor that of their insurance company, business owners have been left without recourse and suffer the economic consequences.

To help mitigate the economic effects of COVID-19 and the recent unfavorable announcements by the Governor, my legislation will lay out a program in which businesses owners can obtain assistance similar to if they were able to acquire it through their insurance provider. In these truly unprecedented times, I believe this is will provide the necessary means to alleviate the impact of recent events without putting additional burdens on our business owners.

I respectfully ask for your consideration to join me as a co-sponsor of this legislation.

Introduced as HB2386