An Act Concerning Business Interruption Insurance
Maine Legislature, Session 130, LD 0694
Committee: Health Coverage, Insurance and Financial Services
Sponsors: GRAMLICH, BAILEY, MATHIESON, TEPLER
Amends: 24-A MRSA §2454

Legislative Document
No. 694
H.P. 506
House of Representatives, March 4, 2021
An Act Concerning Business Interruption Insurance
(EMERGENCY)
Received by the Clerk of the House on March 2, 2021.  Referred to the Committee on 
Health Coverage, Insurance and Financial Services pursuant to Joint Rule 308.2 and ordered 
printed pursuant to Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative GRAMLICH of Old Orchard Beach.
Cosponsored by Senator BAILEY of York and
Representatives: MATHIESON of Kittery, TEPLER of Topsham.
Emergency preamble.  Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, the spread of the novel coronavirus disease referred to as COVID-19 has 
created a public health emergency; and
Whereas, in response to COVID-19, the World Health Organization has declared a 
pandemic, the President of the United States has declared a national emergency and the 
Governor of Maine has declared a state of civil emergency; and
Whereas, in response to COVID-19, the Governor of Maine has also issued executive 
orders limiting the operations of Maine businesses; and
Whereas, it is important for Maine businesses to have access to insurance coverage 
for losses related to the COVID-19 pandemic; and
Whereas, the purpose of this legislation is to ensure that insurers provide coverage 
for business losses related to COVID-19; and
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore,
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  24-A MRSA §2454 is enacted to read:
§2454.  Coverage for losses or business interruption related to COVID-19
1.  Definition.  As used in this section, "COVID-19" means the coronavirus disease 
designated coronavirus disease 2019.
2.  Coverage for losses or business interruption.  Notwithstanding any law, rule or 
policy provision to the contrary, an insurer authorized to do business in this State that 
provides a policy insuring against loss or damage to property, including any loss of 
occupancy or interruption to the operations of a business, may not:
A.  Contain a provision in the policy excluding coverage for any loss of occupancy or 
interruption to the operations of a business directly or indirectly resulting from any 
pandemic declared by the World Health Organization, or its successor organization, or 
declared by the United States Government;
B.  Exclude coverage for any loss of occupancy or interruption to the operations of a 
business directly or indirectly resulting from the COVID-19 pandemic; or
C.  Deny any claim for coverage for any loss of occupancy or interruption to the 
operations of a business directly or indirectly resulting from the COVID-19 pandemic 
on the basis that:
(1)  COVID-19 is a viral disease subject to a policy exclusion for losses resulting 
from a virus; or
(2)  The insured has not suffered any physical damage or loss of property.
Sec. 2.  Retroactivity. The requirements in this Act apply retroactively to March 15, 
2020.
Emergency clause.  In view of the emergency cited in the preamble, this legislation 
takes effect when approved.
SUMMARY
This bill prohibits insurers that provide a policy insuring against loss or damage to 
property from excluding coverage for any loss of occupancy or business interruption 
directly or indirectly resulting from the COVID-19 pandemic.  The bill also prohibits 
insurers from including a provision in a policy excluding coverage for any loss of 
occupancy or business interruption directly or indirectly resulting from a pandemic 
declared by the World Health Organization or the United States Government.
The bill also makes the requirements of this bill apply retroactively to March 15, 2020, 
the date a civil state of emergency was first declared in the State due to the COVID-19 
pandemic.