Following on the heels of the directive issued to business-interruption eruption, insurers by the New York Department of Financial Services, Ricardo Lara, the Insurance Commissioner for the State of California, issued a “request for information,” about business interruption and related coverages so that the State can address “public policy options” and “understand the number and scope of business interruption type coverages in effect” in California and “the approximate number of [such] policies that exclude viruses such as COVID-19.”
As stated in the Notice, Commissioner Lara issued this Notice and “Business Interruption Survey (BIS-2020)” because the “expanding prevalence of COVID-19 within California and recent social distancing and ‘shelter in place’ directives from local governments and the Governor to reduce the continued rapid spread of the virus have left California businesses and the State facing uncertainty and weighing public policy options.” Because of those uncertainties and to address “public policy options,” the California Department of Insurance is directing insurers to respond to an “urgent data survey” by providing data in the four categories below regarding Business Interruption Coverage, Civil Authority Coverage, Contingent Business Interruption Coverage, and Supply Chain Coverage:
- How many policies are covered under each of the coverages identified above?
- Out of these policies, how many policies fall under businesses with more than 500 employees, or alternatively, meet your definition of large business?
- Out of these policies, how many policies fall under businesses with less than 500 employees, or alternatively, meet your definition of medium-size business?
- Out of those with less than 500 employees, how many policies fall under businesses with less than 100 employees, or alternatively, meet your definition of small business?
Reponses, to be submitted in an Excel Workbook, are due by April 9, 2020. We will continue to monitor developments.