Treasury Department Weighs in on Contentious BI Claims Dispute

Subscriber Content
Screenshot of first page of Treasury Department Weighs in on Contentious BI Claims Dispute
By
Michael Pisano and Adam Hamm, Protiviti Managing Directors

In a letter to lawmakers, the U.S. Treasury indicated that it opposes the seemingly unprecedented legislative measures that would retroactively force coverage for business interruption (BI) claims by essentially nullifying the policy language specifically excluding losses related to viral and communicable infections such as COVID-19. The Treasury’s letter is welcome news for the insurance industry, which is warning that such proposals would bankrupt property insurance companies and drive up premiums in the long run.

This article summarizes the Treasury’s letter and explains what’s on the horizon for insurers reeling from the pandemic.

Free Trial

Sign up for a free, no-obligation trial to start exploring our timesaving, valuable resources.