LEGISLATURE INTRODUCES BILL CONCERNING BUSINESS INTERRUPTION COVERAGE
On April 29, 2020, the Michigan Legislature introduced HB 5739 concerning business interruption coverage. The bill would require insurance policies issued in Michigan that offer business interruption coverage to include coverage for business interruption due to the novel coronavirus (COVID-19). Under the proposed legislation, insurers must indemnify their insureds, subject to the policy limits, for any “loss of business or business interruption for the duration of the declaration of state of emergency under Executive Order No. 2020-04.” The bill applies to policies “in force on the effective date of this act.” It protects insureds with fewer than 100 full time employees. The bill has been referred to the Committee on Insurance.
MI HB 5739