Update: New York Joins States Considering Expanded Business Interruption Insurance Coverage

We provide this alert as an update to our ongoing coverage of proposed state legislation mandating expanded business interruption insurance coverage for losses related to COVID-19. For more information about legislation from New Jersey, Massachusetts and Ohio, read our alerts here.

In New York, proposed bill A-10226 would require insurance policies to cover business interruption for the duration of the COVID-19 state of emergency declared on March 7, 2020.^[1] The bill, if passed, would apply only to those businesses with fewer than 100 eligible employees (those working 25 or more hours per week).^[2] Insurers required to make payments under A-10226 would be permitted to seek reimbursement from a state fund that would be financed by a “special purpose apportionment” collected from insurers operating in the state.^[3] The bill is currently in the state’s Assembly Insurance Committee. Kramer Levin will continue to monitor legislative and industry developments.

^{[1] A-10226, Assemb. Reg. Sess. 2019-2020 (N.Y. 2020).}

^{[2] Id.}

^{[3] Id.}