Lexington launches new tax interruption insurance
A municipality can suffer significant loss of tax revenue when a business located within that municipality experiences a property loss. Tax Interruption Insurance fills a vital need for municipalities that cannot afford to remain vulnerable to this exposure, said Kevin Kelley, chairman and CEO of Lexington Insurance Company. A new stand-alone coverage for public entities, Lexington's Tax Interruption Insurance is designed for municipalities with populations of up to 50,000. Municipalities can purchase aggregate policy limits of up to $20 million. Coverage is triggered when an insured peril causes direct physical loss or damage to real or personal property at a business location specified on the policy, which results in that business' non-payment of sales, property, or other scheduled tax revenue to the municipality.