PRESS RELEASE: Councilmember Ryu Urges Insurance Commissioner to Help Small Businesses

LOS ANGELES - Councilmember David Ryu sent letters today to California Insurance Commissioner Richard Lara, State Senator Susan Rubio and State Assemblymember Tom Daly, asking for their support in expanding policy coverage for small businesses to include losses related to the COVID-19 pandemic.

FOR IMMEDIATE RELEASE:  

April 8, 2020

Contact for Councilmember Ryu:

Mark Pampanin

mark.pampanin@lacity.org

213.407.7616

Councilmember Ryu Urges Insurance Commissioner to Help Small Businesses

LOS ANGELES - Councilmember David Ryu sent letters today to California Insurance Commissioner Richard Lara, State Senator Susan Rubio and State Assemblymember Tom Daly, asking for their support in expanding policy coverage for small businesses to include losses related to the COVID-19 pandemic.

“Small businesses across California did the right thing in making sure they were insured for any unforeseen losses or extraordinary circumstances,” Councilmember Ryu said. “But it turns out, the insurance companies don’t count pandemics as a circumstance requiring coverage. Small businesses have done the right thing, now our insurance companies should do the right thing and provide coverage to the small businesses that are in such desperate need right now.”

When small businesses pull out insurance policies to cover them for losses, most policies include “acts of God” coverage - or coverage for unforeseen disaster, such as fire, flood or earthquake. However, the vast majority of these policies don’t include a pandemic, which has forced the closure of all non-essential businesses in California, as an “act of God” deserving coverage.

In his letter, Councilmember Ryu urged the State policymakers to try to strike a deal with the insurance companies to cover the losses incurred by small businesses during this pandemic, or to seek legislative or regulatory measures to require these policy changes across the industry.

State Senator Rubio Chairs the Senate Standing Committee on Insurance, and Assemblymember Daly Chairs the Assembly Committee on Insurance.

Read the letter here.

Learn more about resources and Councilmember Ryu’s actions regarding the Coronavirus pandemic, click here.

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Assistant City Council President Pro Tempore David E. Ryu represents Los Angeles’ 4th Council District which includes Griffith Park, Sherman Oaks, Toluca Lake, Hollywood, Hollywood Hills, Los Feliz, Silver Lake, Miracle Mile, Hancock Park, Windsor Square, Larchmont and portions of Koreatown and Van Nuys. 


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