Coronavirus and Insurance?
Information regarding Coronavirus and your business insurance policy.
The coronavirus has been and will continue to be in the news for the foreseeable future.
There are many ways you and your family can protect yourselves against the spread of this and many other flu/respiratory viruses. We highly suggest looking to the Center for Disease Control and Prevention website - https://www.cdc.gov/coronavirus/2019-ncov/index.html for the best information. They have a dedicated page with ways to help prevent the spread of the virus and how to know if you may be infected.
With any type of incident, whether it is local or global, the question we as insurance agents often get is “is that covered under my policy?”. Over the last few weeks we have seen many articles written about where or if there is even coverage for this. The overall answer is mostly likely not.
We continue to monitor what our carriers and industry leaders are saying related to claims and have provided a couple of links and excerpts:
Recently the Massachusetts Association of Insurance Agents released an article named Coronavirus and Commercial Shutdown…covered or not? Business Income Coverage Activation, The problem is that the business suspension MUST BE “caused by direct physical loss of or damage to property at the described premises.” In most cases there’s no way of knowing if the virus was “caught in” or “spread from” your client’s business location. Even if it was known to be spread from your client’s location, did your client’s business, contaminated with the coronavirus germs, suffer direct physical loss?
Coronavirus and Business Income Losses - The Virtual University receives several calls and emails every day regarding the insurance implications of this virus, and the most common question relates to business income, specifically: “Is there business income coverage if a governmental authority (civil authority) requires businesses to close?". No, there is no business income coverage. This is the short answer. Before business income responds there must be damage to property leading to the cessation of a business. This requirement applies to business income dependent property losses (supply chain) and civil authority losses covered by business income policies. Additionally, there is a specific property exclusion applicable to viruses that may (generally will) apply. This is true of “standard" business income forms; there may be some proprietary forms that respond, but these are rare.
Unfortunately, in addition to the worries about the virus and what it can do to you or your business, it also brings out those who try to take advantage of the situation.
NU Property Casualty 360 has put out this article Coronavirus fraud: A guide to potential schemes that includes schemes including email phishing, fake solicitations for charities.
As with any other claim, we will be here to help navigate. One thing we always note is that not all claims are the same and so please, do not hesitate to reach out to us to help file a claim with your carrier.
