Bush Wants State-run Pool for Business Insurance
Gov. Jeb Bush is proposing a state-run insurance pool for businesses that can't get policies from private insurers, saying that if companies can't get coverage, it could lead to an economic downturn.
Bush said Wednesday that he has asked Insurance Commissioner Kevin McCarty to bring a plan for a state business insurance pool to next week's meeting of the Florida Cabinet, which would have to approve it before it could be created.
The problems that many homeowners and businesses in Florida have in getting coverage for hurricane damage is well known, and state policy makers have tried to deal with that issue for years. Citizens Property Insurance Corp. is a similar pool that sells hurricane damage policies for those who can't get it in the private market.
But businesses in Florida have reported trouble getting any kind of coverage, so-called 'all perils' insurance, and have seen policies canceled and rates increase.
Creating an insurance pool that would guarantee companies could at least find a policy 'would be a way to create a little bit of stability and get a little more capital in the commercial side,' Bush said.
Insurance companies have been reluctant to offer policies because they've had a hard time getting reinsurance - coverage against their own losses from paying claims.
©2014 WUSF. All rights reserved.