Gov. Kathy Hochul officially has signed bill A.10342 into law, expanding business interruption insurance coverage in New York state. The bill’s passage marks a significant step in redefining the scope of business interruption insurance by decoupling it from the requirement of physical damage. Business owners now will have the option to seek coverage for loss of net profits in cases in which closures are mandated by civil authorities for reasons beyond physical damage—such as health crises or other safety concerns.
This move is intended to fill gaps exposed during the COVID-19 pandemic, when many businessowners found they did not have coverage for their businesses due to the absence of direct physical damage.
PIANY supported this bill. The association recognized the importance of providing agents with another product to protect their clients effectively. The new law also allows this expanded coverage to be offered in the excess-line market if traditional insurers do not provide it—adding flexibility and ensuring broader availability. Introduced by the influential Committee on Rules, the bill was prioritized through the legislative process, reflecting its importance to New York state’s business community.
The law will go into effect on Sunday, Oct. 27, 2024, giving insurers and policyholders time to adjust to these important changes. For more detailed information on the development and provisions of the bill, see the related article on PIA Northeast News & Media.
Bradford J. Lachut, Esq.
Bradford J. Lachut, Esq., joined PIA as government affairs counsel for the Government & Industry Affairs Department in 2012 and then, after a four-month leave, he returned to the association in 2018 as director of government & industry affairs responsible for all legal, government relations and insurance industry liaison programs for the five state associations. Prior to PIA, Brad worked as an attorney for Steven J. Baum PC, in Amherst, and as an associate attorney for the law office of James Morris in Buffalo. He also spent time serving as senior manager of government affairs as the Buffalo Niagara Partnership, a chamber of commerce serving the Buffalo, N.Y., region, his hometown. He received his juris doctorate from Buffalo Law School and his Bachelor of Science degree in Government and Politics from Utica College, Utica, N.Y. Brad is an active Mason and Shriner.
