What's happening
This bill requires all commercial insurance policies in New York to cover losses of perishable property from blackouts lasting twelve hours or more.
Why it matters
Reduces financial risk for businesses. By guaranteeing coverage for perishable property lost in blackouts of twelve hours or more, the bill helps businesses—especially those in food, pharmaceuticals, and other temperature-sensitive industries—recover from unexpected power failures.
Standardizes protection across commercial policies. The amendment ensures that all commercial insurance policies in New York include this coverage, eliminating gaps and inconsistencies that might exist between different insurers or policy types.
Encourages resilience and planning. Knowing they have insurance protection, business owners may feel more secure in operating and investing in New York, particularly in areas prone to power outages, while insurers may advocate for better prevention and risk management strategies.
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Who cares
Headline styles
Cover Perishables in Power Outage
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to insurance
- Referred to insurance
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4059
2017-2018 Regular Sessions
IN ASSEMBLY
February 1, 2017
Introduced by M. of A. ORTIZ, PEOPLES-STOKES, WALKER, COOK, SOLAGES -read once and referred to the Committee on Insurance
AN ACT to amend the insurance law, in relation to the inclusion of business interruption insurance in all commercial insurance policies
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subsection (a) of section 3420 of the insurance law is amended by adding a new paragraph 7 to read as follows:
(7) A provision in all commercial insurance policies providing coverage against the loss of perishable property due to a black-out or power outage that lasts twelve hours or longer.
§ 2. This act shall take effect immediately and shall apply to all policies issued, renewed, or altered on or after such effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08943-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.