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Senate of Pennsylvania
Session of 2019 - 2020 Regular Session


Posted: April 17, 2020 06:21 PM
From: Senator Pam Iovino
To: All Senate members
Subject: Business Interruption Insurance Policy
Soon, I plan to introduce legislation that would assist Pennsylvania businesses, both large and small, in receiving payment for business interruption insurance claims filed during the COVID-19 pandemic.

Currently, ambiguous insurance policy language is preventing many businesses in Pennsylvania from receiving payments from their insurers. These businesses have dutifully paid their policy premiums, with the knowledge that they could file claims if their business was ever interrupted. Now, claims are being rejected due to ambiguous insurance policy language, leaving costly, potentially multi-year litigation as businesses’ only option for appeal.

This legislation is designed to clarify Pennsylvania law regarding the interpretation of this ambiguous insurance policy wording and is not intended to rewrite insurance contracts. Under my legislation, businesses would not receive additional payments beyond what their existing coverage permits. Rather, this legislation will help ensure insurers pay meritorious business interruption claims quickly and efficiently to their policyholders.

This legislation imposes no costs on the Commonwealth or taxpayers and is modeled off an Oregon insurance statute that withstood challenges to its constitutionality.

Please join me in sponsoring this legislation to help Pennsylvania businesses that have been affected by the COVID-19 pandemic.  

Introduced as SB1127