As the year winds to a close, the Covid-19 pandemic is in its ninth month. As shocking as this crisis was at its onset, it’s even harder to grasp the reality that it’s more of a marathon than a sprint when it comes to managing all its implications. Living with coronavirus truly has become the new global normal. How is the business insurance industry responding, to help companies get through it?
The business interruption (BI) feature of a property insurance policy responds when a business is rendered inoperable due to physical damage. Some policies also include coverage for civil authority interruptions; in other words, when the government ordered a business closed.
- Policies often have virus exclusions. And physical damage to your property as a direct result of Covid-19 may be hard to prove. Furthermore, to qualify for successful recovery, you may have to demonstrate that police have physically cordoned off your business space.
- But all may not be lost. In the past, governments and courts have ordered insurers to make exceptions in extraordinary circumstances. Prior to 9/11, for instance, terrorism coverage did not exist. In relation to Covid-19, a number of states have already introduced legislation requiring the retroactive coverage of BI claims.
If coronavirus has interrupted your business operations, your best move is to submit a notice of claim.
Economic uncertainty and lost revenue have caused furloughs and layoffs at many companies. Regardless of how carefully these moves are implemented, affected employees may allege discrimination, wrongful termination or similar claims. An employment practices liability (EPL) policy responds to covered situations.
- Any downsizing, pandemic related or not, should be orchestrated by your employment counsel. Submit notice of any potential EPL claims to your carrier.
- An EPL policy will not retroactively cover issues related to prior workforce reductions. So, if you’re worried about this possibility at some point down the line, consider purchasing a policy now.
General Liability Issues
A general liability insurance policy might respond to lawsuits filed by customers, if they can link their viral illness directly to a member of your workforce. Review your directors’ and officers’ policy to be sure you fully understand your coverage.
Looking for better business insurance options? We Can Help!
The agents at Aligned Insurance, a member company of the Lyons HR family, are fully equipped to help ensure your business coverage needs are met during the Covid-19 pandemic and beyond. We’ll tailor an insurance solution to your unique needs and keep claims processes smooth, simple and effective, so you can get back to business as usual. Contact us today for more information or a free quote.