The U.S. Travel Association said that legislation to provide compensation for business-interruption losses would be critical to helping the travel industry weather future pandemics. 

Rep. Carolyn Maloney (D-N.Y.) introduced a bill that would create the Pandemic Risk Reinsurance Program, a system of shared public and private compensation for business-interruption losses resulting from future pandemics or public health emergencies. 

Maloney said the bill would both require insurance companies to offer business-interruption insurance policies that cover pandemics and ensure that there is sufficient capacity to cover these losses. Like the Terrorism Risk Insurance Act (TRIA) introduced after the attacks of 9/11, the federal government would serve as a backstop to maintain marketplace stability and to share the burden alongside private industry, Maloney said. 

As the Covid-19 pandemic has caused the unprecedented closure of businesses throughout the U.S., hotel owners and other travel suppliers are among those that found that their business-interruption policies do not cover pandemics

U.S. Travel said that the measure would go a long way in giving businesses the confidence they need to reopen, which will be vital to a rapid, robust and sustained economic recovery.

“9/11 exposed the need for terrorism risk insurance, and since the impact of coronavirus on the travel industry has been nine times that of 9/11, it is very sensible to offer a similar backstop for pandemics,” said U.S. Travel executive vice president for public affairs and policy Tori Emerson Barnes. “The PRIA legislation is a critical step in building the policy framework to navigate out of the economic crisis that has resulted from the pandemic and help ensure it never happens again.”

Comments

From Our Partners

2020 Crystal Webinar
Crystal River Cruises: True Luxury on the Rivers of Europe
Register Now
Happy Tours
Happy Tours
Read More
2020 Uganda Webinar 2
Uganda’s Vast Horizons Await
Register Now

JDS Travel News JDS Viewpoints JDS Africa/MI