Closures and shutdowns caused by COVID-19 have significantly impacted the employees and operations of businesses across the US.
The Business Continuity Coalition (BCC) currently represents the restaurant, entertainment, hospitality, gaming, retail, communications, broadcasting and real estate industries by encouraging policymakers to take urgent steps to prepare for future risks.
The BCC is advocating for a public/private business continuity insurance program that, in the event of a government-ordered shutdown, will enable employers to keep payrolls and supply chains intact.
It does this by helping to limit job losses and furloughs, reducing stress on the financial system, and speeding economic recovery when government-imposed limitations on operations are lifted.
The BCC was developed in a bid to develop a plan with policymakers and other stakeholders to protect American jobs and to limit future economic damage from pandemics and other national emergencies that cause business interruptions.
The effort to create a plan for a public and private business continuity insurance program is in its early stages.
The plan must meet the needs of a broad range of groups: the businesses and employers directly impacted, insurers, lenders and other creditors, policymakers, and importantly, taxpayers.
Patrick Kilcur, executive vice president, Motion Picture Association, and Jean Prewitt, president & CEO, Independent Film & Television Alliance, agree with the BCC’s critical objective and its importance to their industry.
Kilcur commented: “The American film, television, and streaming industry is a strong contributor to the U.S. economy, supporting more than 2.5 million jobs in all 50 states. COVID-19 has caused enormous uncertainties and challenges for our industry. We look forward to working with the BCC on a public/private insurance solution which will be essential as we navigate returning to production.”
Sean Kennedy, executive vice president of public affairs, National Restaurant Association commented: “Restaurants across the country were the first shutdown by the pandemic and will be the last to recover. Restaurants that have managed to survive are faced with an uncertain future and long-term challenges as pandemic threats continue to loom.
A public/private backstop for business interruption insurance will help remove one of the unknowns in rebuilding and help small and large business owners plan for the future.”
Prewitt stated: “Insurance policies are vital to ensuring our industry can return to production in a meaningful way, and the entertainment industry looks forward to working with the BCC and the other stakeholders on this important initiative.”
Steven A. Wechsler, president and CEO of Nareit, added: “We believe it is better to plan and prepare now for the future economic risks associated with pandemic-related and other potential government shutdowns of the economy rather than just wait for the next time.”
John Doyle, President and CEO of Marsh also commented: “We have been in conversations with the Coalition and many of its members throughout its formation. We believe a policyholder-led group will be a powerful force in driving consensus on a public-private solution for future pandemic risk,” said John Doyle, President and CEO of Marsh.
