( Reuters) – The U.S. insurance industry is promoting the idea of an insurance coverage strategy backed by the federal government that would assist companies that in the future suffer losses from a pandemic, people acquainted with the effort informed Reuters.
FILE PICTURE: Morning commuters are seen on Wall St. outside the New York Stock Exchange (NYSE) in New York, U.S., March 20,2020 REUTERS/Lucas Jackson
The campaign includes conversations with legislators and regulators, public statements and coordination with a broad union of non-insurance business consisting of sellers, hoteliers and booksellers, sources said.
Insurance Companies are doing this after facing several suits, intense political pressure and criticism from consumers with business disruption policies over not covering their recent financial challenges due to the novel coronavirus pandemic.
About 40%of small businesses have organisation disruption coverage, according to the Insurance Info Institute, an industry trade group.
While these policies may cover profits losses from typhoon damage, lightning strikes or cars and trucks crashing into buildings, they either leave out or do not particularly cover a global pandemic, however much it might disrupt company.
U.S. insurers state they wo