"Pandemics simply are not insurable risks; they are too widespread, too severe, and too unpredictable for the insurance industry to underwrite," said
"We need a sustainable solution that provides simplicity, certainty, and immediate relief to impacted businesses," said
"The small business community is looking to our industry to provide leadership to ensure there is immediate assistance available during future pandemics," said
Businesses would purchase their desired level of revenue replacement assistance through state-regulated insurance entities that voluntarily participate with the
NAMIC and APCIA represent approximately 90 percent of the home, auto, and business property/casualty insurance underwriters in
Business Continuity Protection Program (BCPP)
Pandemic risk protection has been largely unavailable in the private marketplace because it is inherently uninsurable. But insurers, together with agents and brokers, have been developing solutions that work for our customers and all parts of the industry to provide protection against widespread economic shutdowns due to a viral outbreak. NAMIC and APCIA represent approximately 90 percent of the home, auto, and business property/casualty insurance underwriters in
How it Works:
* Businesses purchase revenue replacement assistance from the
* Applications are based on past years' tax return data.
* Businesses certify that they will use any funds received for retaining employees and paying necessary operating expenses and that they will follow applicable federal pandemic guidance.
* Relief is automatically triggered following a federally declared public health emergency.
* Applications would be simple to complete, using a one-page electronic application that includes information directly from the business' previous annual tax returns (e.g.,
* Protection must be purchased at least 90 days before the Presidential declaration.
* Businesses could choose a desired level of protection for 3 months relief for up to 80% of: payroll (excluding highly compensated employees); employee benefits; and operating expenses.
* Multistate businesses would provide a specific allocation of protection at the time of application or renewal.
* Businesses would attest to compliance with federal pandemic guidelines and certify that any relief assistance would be used to retain employees and keep the business viable.
* Eligible businesses would include any firm incorporated in the
Business Continuity Payments:
* Businesses purchase revenue replacement assistance through state-regulated insurance entities that voluntarily participate with the
* Relief would be automatically triggered and immediately paid following a Presidential viral emergency declaration (no advance documentation or claims adjustment).
* Closure declarations would specify which types of businesses are partly or fully closed (referencing business categorization under the North American Industry Classification System (NAICS).
* Post-relief auditing for valid use of funds enforced through fines, required repayment, and criminal penalties.
* Every year, the
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