Although the federal government’s approach is understandable, we feel it is missing a prime opportunity to utilize the infrastructure that already exists. The idea floated by the White House is a stimulus package where the federal government sends out hundreds of billions of dollars, which is fine, but not optimal.
What would be better?…. Businesses have insurance. Therein exists a clause called Business Interruption. It is used in situations when a business shuts down because of a natural disaster or other unforeseeable events. These businesses are covered for interruption.
As of now, the Coronavirus is not covered under normal business insurance policies, though it is the very definition of an interruption. This might be an understandable exemption normally, but these are not normal times. These insurance companies are equipped with the metrics, the infrastructure, manpower and know-how to handle these losses and claims.
All they need is the desire and a federal impetus. Rather than the federal government throwing money into the wind, and hoping, it is imperative that they mandate that these insurance companies pay the loss claims, then back the insurers’ output.
This would help all small businesses that have been mandated to close due to the Coronavirus, such as restaurants, bars, and gyms. The insurance companies could act as the liaison to the government with a local presence yet broad reach and properly measure what the actual losses were while efficiently distributing payouts. This method will accelerate the distribution of the money, future spending and recovery. Time is of the essence and this is a fast and effective way to restore consumer confidence and get our country back on track.
We, at Eidi Properties, urge you to reach out to your lawmakers and the White House and get this message out. We are confident this is one method that can help get the economy going once this horrible virus passes, which it will.