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COVID-19 Relief Package Update – Business Immunity

 

Reports out of Washington, D.C. indicate that Congress is at an impasse over the details of the next COVID-19 relief package. At the center of discussions between party leaders are the expiration of the $600-per-week unemployment insurance benefit provided under the CARES Act and liability protections for businesses as they relate to COVID-19. Late last week, PMAA shared a message with its member associations that the White House has indicated that it would be willing to cut a deal on unemployment insurance and forgo liability protections for businesses. A recent Washington Post article on situation is available here.

Fortunately, FUELIowa members are protected against Congressional inaction on liability protections for businesses. Barring Congressional action preempting states from granting businesses liability protections, the signing of Senate File 2338 by Iowa Governor Kim Reynolds affords Iowa business owners liability protection for any civil damages sustained from a person’s potential exposure to Covid-19 on the owner’s premises. Senate File 2338 can be viewed here.

Iowa’s business immunity law states that a person in possession or control of a premises, including a tenant, lessee, or occupant of a premises, who directly or indirectly permits or invites a person onto their premises, shall not be liable for any civil damages sustained from the person’s exposure to Covid-19, unless any of the following apply: 

  • The person in possession or control of the property recklessly disregards a substantial and unnecessary risk the individual would be exposed to Covid-19.
  • The person in possession or control of the premises exposes the individual to Covid-19 through an act constituting actual malice.
  • The person in possession or control of the premises intentionally exposes the person to Covid-19.

Additionally, Senate File 2338 includes a safe harbor provision for FUELIowa member compliance with regulations, executive orders, or public health guidance when applicable at the time a person was alleged to be exposed to Covid-19

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