COVID-19 and Insurance
Many have questioned if their property insurance would pay the cost of disinfecting their business property if needed. Based on industry interpretation of policy language thus far, contamination of business property with COVID-19 would not be considered a 'direct physical loss' and expenses therefore not covered.
The Business Income/Extra Expense coverage would not be activated for loss of revenue due to the closing of operations to disinfect or reduction in business due to public voluntary or government imposed restricted activity. This coverage is activated by a covered loss only.
As the insurance industry has to evolve when new risks/exposures develop, the organization that creates coverage forms is finalizing an endorsement to extend some limited Business Income coverage resulting from the coronavirus. It will be available for carriers to file for use, or carriers may develop their own, but today neither can be secured.
In regards to Workers Compensation, an employee who contracts the coronavirus would be eligible for worker’s compensation benefits if it was found the COVID-19 diagnosis arose out of and in the course of employment. Although this may be difficult, there would be coverage if found to be true.
Other insurance policies that may also come into consideration - general liability, professional liability, directors & officers.
Although the consensus is that insurance will not be a solution for many situations that may evolve from COVID-19, if your business is impacted please contact us as we will file a claim with the carrier on your behalf for a firm determination.