Treasury Department Weighs in on Contentious BI Claims Dispute

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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.

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