Louisiana joins a growing list of states, including New Jersey, Massachusetts, Ohio, and New York that are considering legislation, here and here, that would require insurance coverage for the business interruption losses caused by COVID-19. We have discussed other legislative efforts here and here. The Louisiana House and Senate have each put forth bills that would, like the other states’ measures, require insurers to cover business interruption losses due to COVID-19 despite policy language that an insurer might try to rely on to argue otherwise. Unlike the other bills, however, the measure offered in the Louisiana Senate is not limited to small businesses (although the House bill is). Further, neither of the Louisiana measures provide a mechanism for the insurers to seek reimbursement for payments made pursuant to the law, which is unlike the other states’ legislation. We will continue to monitor these measures. Stay tuned.
