What's happening
This bill requires all commercial insurance policies in New York to cover loss of perishable property from blackouts lasting twelve hours or more.
Why it matters
Expands protection for businesses. By requiring coverage for perishable goods lost during extended blackouts, the bill helps businesses—especially those dealing in food, medicine, or other perishables—avoid severe financial losses from power outages.
Addresses increasing blackout risks. As power outages from storms, infrastructure failures, or grid issues become more common, this law ensures businesses are less vulnerable to unpredictable events outside their control.
Could affect insurance costs. Mandating new coverage may lead to higher premiums for commercial policyholders, but it can also prevent devastating, uncovered losses that could threaten business viability.
Levels the playing field among insurers. By standardizing this coverage, the bill prevents insurers from excluding blackout-related spoilage, ensuring all commercial policyholders receive the same baseline protection.
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Who cares
Headline styles
Insure Perishable Food Loss
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
2819
2019-2020 Regular Sessions
IN ASSEMBLY
January 25, 2019
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.
LBD07534-01-9
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.