Opening the Economy
The U.S. Administration has begun producing an outline for the reopening of American businesses and life as the pandemic appears to be reaching its apex. The “Framework for Reopening America” was drafted by governmental officials led by the Federal Emergency Management Agency (FEMA) and the Centers for Disease Control and Prevention (CDC). The evolving document provides guidance for state and local governments “…to adjust restrictive community mitigation measures in a controlled way that supports the safe reopening of communities when appropriate, supporting Americans reentering civic life.”
Amongst other things the plan distinguishes between low and high mitigation communities based on significant coronavirus spread, provides a 3-phrase framework for re-opening communities, discusses several communication and education strategies, and differentiates between federal and state or local roles. There has been some debate about the role of the Administration’s decision-making powers but overall, just like with emergency orders and closures, state and local governments hold police powers in these areas.
Stay tuned for more information as the country moves forward.
Insurance policy business interruption issues and questions have arisen during the COVID-19 pandemic. There has been concern regarding if insurance policies will cover these COVID-10 claims and each policy should be checked. Legislation has been introduced in several states addressing this issue as well. The President weighed in saying “…you have people that have never asked for business interruption insurance, and they’ve been paying a lot of money for a lot of years for the privilege of having it. And then when they finally need it, the insurance company says, ‘We’re not going to give it.’ We can’t let that happen.”
Restarting Auto Manufacturing
Ford Motor Company said this week that it was considering a phased restarting of its auto manufacturing within the next few months, utilizing “enhanced safety standards …to protect workers.” Ford also mentioned concerns for its financial for its financial condition, dealership and supplier viability and the overall decline in auto sales.