- Palumbo (R-New Suffolk) calls on Trump, Cuomo to declare Chinese COVID-19 response an Act of Terrorism
- Doing so would allow businesses to access Terrorist Risk Insurance Fund
- Small businesses continue to have claims denied due to lack of virus-specific coverage
New York State Assemblyman Anthony Palumbo (R-New Suffolk) has called on both President Trump and Governor Cuomo to declare China’s handling of the Coronavirus pandemic an Act of Terrorism. The designation of terrorism would allow businesses to access approximately $1 trillion of relief funds held in the Terrorist Risk Insurance Fund (TRIF) through their insurance provider. Created after September 11, 2001, the TRIF would provide capital to insurance companies to be used to pay claims submitted by businesses harmed by the Coronavirus pandemic. These additional funds would also help ensure that insurance companies are not required to take on an inordinate amount of risk when underwriting these policies, given the high demand.
Since the outbreak of the Coronavirus, businesses have filed business interruption insurance claims in order to cushion their losses in the short term. An overwhelming majority, however, have had their claims rejected by their insurance provider due to clauses within their policy that specifically carve out virus related events. The lack of insurance funds combined with the difficulty that businesses, especially small businesses, are having to access the relief programs set up by the CARES Act has increased the financial pain felt by the business community as a result of the Coronavirus pandemic. Palumbo, who plans to run for the New York State Senate this fall, hopes that these actions will provide long-overdue financial relief to businesses both on Long Island and across the United States as they struggle to survive.
From Superstorm Sandy to many other unprecedented events, our Coronavirus Response Team (CRT) showcases a wealth experience with helping clients create, file, and negotiate insurance claims with their policy carrier. Our CRT will provide you with the needed expertise to make this thorough, detailed, and sometimes difficult process as efficient as possible.
Check out our DSJCPA COVID-19 Information Center to Meet the Team and learn more about their experience in this specific but critically important space.
Chief Business Officer, Disaster Relief Consultant