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Pandemic insurance proposal would cover event cancellation

Groups such as ASAE and the National Retail Federation support bill, but insurers argue cost needs to be borne by government

June 5, 2020
By Walt Williams

Multiple associations are throwing their support behind legislation that would create a federal program to insure business losses caused by a pandemic or other health emergency, but a debate about who should pay for it could derail the effort.

The proposed Pandemic Risk Reinsurance Program would be modeled after the Terrorism Risk Insurance Program, a federal program created after the Sept. 11, 2001, terrorist attacks to insure losses caused by terrorism. Multiple versions of the program have been proposed, but one that has gained the support of ASAE and other associations was introduced May 26 in a bill sponsored by Rep. Carolyn Maloney (D-N.Y.), which would split costs for compensation between the private and public sectors.