A10837 (Carroll)/S8853 (Gounardes) would require future losses be covered under business interruption insurance during the coronavirus disease 2019 pandemic. Many nonprofits are being denied business interruption insurance coverage, and realizing they did not have access to more sophisticated insurance plans. Contact your state legislators to let them know you support business interruption insurance to cover losses due to COVID-19 for nonprofits.
Nonprofit revenue losses due to COVID-19
Nonprofits have experienced significant revenue losses, layoffs, and closures due to COVID-19, particularly nonprofits heavily reliant on revenue-generating events and fundraisers, nonprofits with fee-for-service contracts reimbursed for the number of people or units served, and community development corporations who generate revenue from rent. Nonprofits in New York are not financially strong and these losses could lead to significant closures and adverse consequences to the communities we serve.
Most nonprofits with general liability or commercial property insurance have very limited business interruption coverage. Unlike for-profit entities, most nonprofits are not well-versed in insurance coverage negotiations and do not have weighty insurance brokers advocating for their interests. Accordingly, without specific legislative intervention, nonprofits are unlikely to have future coverage under business interruption insurance for any COVID-19 related losses.