Cambridge City

Policy Order
POR 2020 #72
Order Adopted
Mar 30, 2020 5:30 PM

City Council support of SD.2888: An Act Concerning Business Interruption Insurance.


Department:City Clerk's Office, AMSponsors:Vice Mayor Alanna Mallon, Mayor Sumbul Siddiqui, Councillor Marc C. McGovern
Category:Policy Order


  1. Printout



On March 23, 2020, Governor Charlie Baker ordered the closure of all non-essential businesses across Massachusetts for two weeks, forcing many vulnerable small businesses to close their doors, and resulting in lost revenue for them; and




It is estimated that 15,000 stores could permanently close across the country in 2020, a number significantly higher than the 9,548 stores that permanently closed in 2019, highlighting just how devastating this lost revenue will be for businesses, particularly for small businesses that have less savings than larger businesses; and




Small business owners often invest their personal savings into their businesses, indicating possibly severe consequences for small business owners, as they generate less revenue, and may not have extensive personal savings; and



Nevertheless, insurance companies have largely denied business interruption policy claims, preventing business owners from accessing much-needed and much-deserved financial relief; and




State Senator James Eldridge recently filed SD.2888: An Act Concerning Business Interruption Insurance; and




This legislation would require insurance companies to pay business interruption policyholders that have experienced an interruption to their business as a result of the COVID-19 pandemic, if they have 150 or fewer employees; and




The bill would apply to hotels, restaurants, arts organizations, and other businesses that have been hit hard by this public health crisis, and emphasizes uplifting small businesses during these challenging times; and





Supporting SD.2888 would align with the City Council goal of “[ensuring] that Cambridge remains an Innovation Hub that integrates businesses of all sizes into a thriving ecosystem”; now therefore be it




That the City Council go on record in support of SD.2888: An Act Concerning Business Interruption Insurance; and be it further




That the City Clerk be and hereby is requested to forward a suitably engrossed copy of this resolution to the Cambridge legislative delegation on behalf of the entire City Council.


Meeting History

Mar 30, 2020 5:30 PM Video City Council Regular Meeting
draft Draft
YEAS:Dennis J. Carlone, Patricia Nolan, Jivan Sobrinho-Wheeler, Alanna Mallon, Marc C. McGovern, Sumbul Siddiqui, E. Denise Simmons, Timothy J. Toomey, Quinton Zondervan