Several media entertainment companies and associations have joined a cross-industry coalition to advocate for a new type of insurance to cover future government-ordered shutdowns such as those under Covid-19.
The Business Continuity Coalition was formed in late October to push for the creation of a public/private business continuity insurance program. Its members include media giants like Fox Corporation, Sony Pictures Entertainment, ViacomCBS, and Walt Disney Company, as well as major organizations such as the Independent Film & Television Alliance, Motion Picture Association, and NCTA–The Internet & Television Association.
Other media and entertainment industry members include the National Association of Broadcaster and the National Independent Venue Association.
The coalition issued a press statement saying the newly proposed insurance will “enable employers to keep payrolls and supply chains intact, 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.”
MILLIONS OF JOBS
Millions of film and television jobs have been impacted by Covid as production was shutdowned during the pandemic.
“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,” says Patrick Kilcur, executive vice president of the Motion Picture of America. “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.”
‘VITAL’ INSURANCE
Jean Prewitt, president of the Independent Film & Television Alliance echoes support for the newly proposed insurance. “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,” he says.
The coalition also encompasses restaurant, hospitality, gaming, retail, and real estate industries with members like the American Gaming Association, American Hotel and Lodging Association, International Council of Shopping Centers, National Apartment Association and National Restaurant Association.
According to the coalition, there are some models that can provide guidance in structuring a business continuity insurance program, like the Terrorism Risk Insurance Program enacted in the aftermath of the 9/11 attacks and the War Damage Corporation developed during World War II.
CONGRESSIONAL HEARING
Coincidentally, the topic of insurance during pandemics will be discussed in an upcoming virtual congressional hearing. The Subcommittee on Housing, Community Development and Insurance will hold the hearing “Insuring against a Pandemic: Challenges and Solutions for Policyholders and Insurers” on Nov. 19 at 10 a.m. (Eastern Time). The subcommittee is chaired by Congresswoman Maxine Waters (D-California). That hearing will be livestreamed on https://financialservices.house.gov/live/.
In the meantime, the Business Continuity Coalition is working to get congressional bipartisan support for its proposal. BCC’s website features statements from two legislators, Carolyn B. Maloney (D-New York) and Steve Stivers (R-Ohio).
“Congress needs to be proactive in helping businesses protect themselves from economic losses as a result of pandemics, which, as we’ve seen, can be devastating to businesses of all sizes,” states Maloney.
For his part, Stivers says, “I think we need to make sure that if this ever happens again and the government shuts down the economy, (Congress) holds people harmless and businesses harmless in the future. A solution is important to the future of our economy and our economic vitality.” He adds, “We’ve seen business interruption insurance not being willing to cover any pandemics. I think you’re going to start to see lenders … requiring some type of pandemic coverage in their loan covenants in the coming years.”
—CESAR ARREDONDO
Featured photo: Terje Sollie from Pexels