Louisiana legislators take a look at COVID-19 business interruption insurance bill

Louisiana legislators take a look at COVID-19 business interruption insurance bill | Insurance Business

Louisiana legislators take a look at COVID-19 business interruption insurance bill

A bill currently being reviewed by Louisiana lawmakers could force insurers operating in the state to cover business interruption insurance claims related to the COVID-19 pandemic.

The state’s legislature went back into session earlier this week after about two months of suspended work due to the outbreak. Both the House and Senate have until June 01, 2020 to complete as much as they can.

While the two-month delay interrupted bills that could have passed earlier this year, it also led to several new bills being introduced that are related to the pandemic, WVUE-TV reported. One of the bills, House Bill 858, could change insurance claim requirements.

Read more: Proposed legislation could destroy insurance industry say experts

Introduced by Rep. Royce Duplessis, it requires insurers doing business in the state to retroactively cover business interruptions claims due to the outbreak from March 11, 2020. HB 858 would apply to policies issued to insureds with fewer than 100 full-time employees.

Another proposed bill in the Senate would require health insurance companies to change their policies to allow coverage for COVID-19 testing.

Read more: State looks at legislation to void coronavirus exclusion clauses

Other similar legislation has been drafted in other parts of America, such as in the states of New Jersey, Ohio, Massachusetts, and New York. Opponents of the bills have claimed that such legislation would be “unconstitutional” and could leave the insurance industry in financial ruin.