The bill introduces the "COVID-19 Pandemic Insurance Recovery Act" as a new chapter in Title 27 of the General Laws, which is focused on insurance. The act is designed to provide a mechanism for businesses to recover losses from their insurers due to business interruption as a result of the coronavirus pandemic. To be eligible, businesses must have had a business interruption insurance policy in force on March 9, 2020, or thereafter, which is the date the governor declared a public health emergency and state of emergency in executive order 20-2. The act applies to businesses with fewer than one hundred (100) eligible employees in the State of Rhode Island, with an eligible employee defined as one who works a normal work week of twenty-five (25) or more hours.

The bill specifies that insurance policies covering loss or damage to property, including the loss of use and occupancy and business interruption, will be construed to include coverage for business interruption due to a global virus transmission or pandemic as outlined in the governor's executive order. The coverage will be subject to the policy limits and will indemnify insured businesses for losses incurred during the state of emergency. Insurers indemnifying claims under this provision may seek relief and reimbursement from the department of business regulation insurance division. The insurance commissioner is tasked with establishing procedures for the submission and qualification of claims, including standards to prevent fraudulent claims and safeguards for insurers in reviewing and paying claims. The commissioner will also collect additional amounts from insurance companies, excluding life and health insurance companies, to recover amounts paid under this chapter. The act will take effect upon passage.