Broker Check

A Possible Solution to COVID-19 Business Interruption Losses

June 03, 2020

In an ABA Journal interview with leading lawyers on the impact of COVID-19, Kenneth Feinberg - noted for administering high profile compensation funds - suggested a National Coronavirus Compensation Fund as an alternative to litigation. Similar to the 9/11 Victim Compensation Fund, claimants would get taxpayer funded compensation in return for waiving their right to sue.

Since compensation for business interruption has been further complicated by riots damaging or destroying businesses preparing to reopen, a funded solution would seem to be a good option. Congress now has a number of proposals to consider; this should be one of them.