P/C Insurers Put a Price Tag on Uncovered Coronavirus Business Interruption Losses
However, free market think tank R Street, which typically opposes government insurance programs, thinks a federal pandemic insurance program has merit. In his blog on Insurance Journal, Right Street’s Ray Lehmann writes that if the private insurance market cannot absorb the risk of pandemics, there has to be an alternative to allowing businesses to fail and employees to be laid off.
“It falls to government to step into the breach,” Lehmann stated, noting that that’s what government is doing with the unprecedented $2 trillion recovery package. “But ad hoc responses are less than ideal. Better still would be a permanent government solution,” he wrote.
“The devil, obviously, is in the details,” he added.