87R2288 JES-D
 
  By: Schwertner S.B. No. 249
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to business interruption insurance coverage for losses
  arising from a pandemic.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter A, Chapter 2002, Insurance Code, is
  amended by adding Section 2002.007 to read as follows:
         Sec. 2002.007.  BUSINESS INTERRUPTION INSURANCE: PANDEMIC
  COVERAGE. (a) In this section, "business interruption insurance"
  means insurance coverage against lost income and certain operating
  expenses caused by the policyholder being forced to vacate the
  policyholder's business because of a loss covered by the policy.
         (b)  This section applies to each insurer that provides
  business interruption insurance in this state, including a county
  mutual insurance company, farm mutual insurance company, Lloyd's
  plan, and reciprocal or interinsurance exchange.
         (c)  Business interruption insurance must cover loss caused
  by a pandemic, including loss caused by the order of a civil
  authority made to prevent the spread of a pandemic, without regard
  to whether the pandemic caused a direct physical loss to the
  policyholder's property.
         SECTION 2.  The change in law made by this Act applies only
  to an insurance policy that is delivered, issued for delivery, or
  renewed on or after January 1, 2022.
         SECTION 3.  This Act takes effect September 1, 2021.