Topic: COVID-19

On March 16th, New York Mayor Bill de Blasio issued Emergency Executive Order No. 100 (the “Order”), ‎imposing restrictions on gatherings ‎and businesses during the COVID-19 State of Emergency. The Order, amongst ‎other things, ordered the temporary closure of ‎all entertainment venues, commercial gyms, and adult congregate ‎centers‎‎. The Order also limits restaurants, bars and cafes to take-out and delivery orders only.‎

On March 6, 2020, the New York Department of Financial Services (“NYDFS”) issued Insurance Circular Letter No. 4 (the “Circular Letter”) addressing the ability for insurance companies to offer “Cancel for Any Reason” or “CFAR” benefits in the state. The Circular Letter clarifies the ability for both insurance companies as well as insurance agents to offer CFAR benefits in New York and, while not directly overruling prior guidance, the Circular Letter substantially expands opportunities for insurance companies to offer CFAR coverage in the state in light of the Novel Coronavirus pandemic.

With the increased uncertainty around how Insurers can and should respond to the Novel Coronavirus (“COVID-19”), the New York State Department of Financial Services (“DFS”) has issued guidance to (i) all DFS Regulated Entities requesting that all such entities have preparedness plans to address the risks posed by COVID-19; and a call for special report to (ii) all authorized Property/Casualty Insurers requesting such insurers to provide policyholders with information and developments surrounding business interruption and related coverage written in New York.