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Massimo D'Angelo Massimo D’Angelo

On March 27, 2020, shortly after Gov. Andrew Cuomo adopted shelter-in-place mandates in New York, the Legislature introduced Assembly Bill No. A10226. This proposed legislation, if enacted, would broadly extend an insurance policy’s business interruption coverage to cover losses sustained “due to the coronavirus disease 2019 (COVID-19).” The deep-pocketed insurance industry—with their powerful lobbying groups vociferously opposing the legislation on constitutional grounds for violating the contracts clause of the U.S. Constitution—likely stand on firm legal footing since the Legislature is effectively attempting to rewrite the parties’ insurance contracts by extending coverage beyond the areas explicitly covered under the original policy language.

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