Sending Office: Honorable Brian K. Fitzpatrick
Introduced by Congressmen Brian Fitzpatrick (PA-01), Gil Cisneros (CA-39), Will Hurd (TX-23), and Tom Suozzi (NY-03)
Current Cosponsors: Dean Phillips
This legislation would provide small businesses access to business interruption insurance that will help keep them afloat during national emergencies. Countless business interruption insurance policyholders across the country who have been paying their premiums
for many years have discovered in recent weeks that their policies do not cover government-ordered business shutdowns caused by a national emergency, in this case, the COVID-19 pandemic.
The Never Again Small Business Protection Act would require that business interruption insurance provide coverage for businesses and nonprofits for losses that
stem from any federal, state, or local government-ordered business shutdown following the declaration of a national emergency. This coverage would support businesses that are impacted for at least thirty days as long as businesses keep their employees employed
and maintain their health insurance coverage.
To ensure transparency for policyholders, insurers would only be able to exclude coverage for national emergencies if the insurer has received a written statement from the policyholder that affirmatively authorizes the exclusions, or if the policyholder
fails to pay premiums associated with the coverage. To provide adequate stability for insurers, the government would put in place a federal backstop that would cover the costs of insurers saving the small businesses within their communities.
The Never Again Small Business Protection Act would require the Federal Advisory Committee on Insurance to conduct a study on the feasibility of a federal backstop
for small business access to business interruption insurance. Finally, for the mandate on business interruption insurance to come into effect prospectively, the Secretary of Treasury will need to certify that an adequate federal backstop has been put in place.
Rep. Brian Fitzpatrick
e-Dear Colleague version 2.0