Insider talked with out of home insurance expert Stu Lee about whether coronavirus is covered under policies.
Stu, are coronavirus losses covered under a company’s business insurance or replacement insurance policies?
Unfortunately, there is no coverage at this point in time. I would encourage the billboard operators to file a claim with their agent if they want to, but at this point in time, it appears there would be no coverage.
Are there any endorsements specifically for COVID-19 or any other pandemic events?
At this time, it appears that the insurance carriers will not offer or develop forms that would provide coverage for COVID-19 or future pandemic events.
Is there language contained in insurance policies that prevents or excludes payment of claims for business interruption, either voluntarily or due to an order of a civil authority, as a result of COVID-19?
The Business Income (and Extra Expense) Coverage Form as well as the Business Income coverage provided under the Businessowners Property form set out the requirement that the suspension of operations must be caused by direct physical loss of or damage, and the loss or damage must be caused by or result from a Covered Cause of Loss. Furthermore, specific exclusions apply to situations involving a virus.
The Businessowners (BP 00 03 07 13) includes the following Exclusion: 1. We will not pay for loss or damage caused directly or indirectly by any of the following … J. Virus or Bacteria
The Commercial Property policies include the Exclusion of Loss Due to Virus or Bacteria (CP 01 40 07 06). The endorsement sets out in part: B. We will not pay for loss or damage caused by or resulting from any virus, bacterium or
other microorganism …
If an insured’s employees become infected with COVID-19, would the Workers’ Compensation policy respond?
Typically, the flu and other infectious diseases are not covered as work related. For an illness or disease to be covered under Workers’ Compensation, the illness or disease must be contracted in the course of employment and must have been caused by conditions in the workplace. Some jurisdictions may have, or may soon be adding, presumptions for occupations such as medical providers. Such actions could change the burden of proof. All WC claims will be investigated on a case by case basis applying jurisdictional law to make compensability decisions.
Is there coverage if a business is found to be legally liable because of COVID-19?
Reported claims will be investigated to determine if coverage applies. Potential exclusions include the BP 14 86 Communicable Disease Exclusion and CG 21 32, CG 33 76 Communicable Disease Exclusions. These endorsements exclude “bodily injury” or “property damage” arising out of the actual or alleged transmission of a communicable disease.
As each individual loss scenario is dependent upon the facts and coverages related to that loss, the statements above are not intended to be a guarantee of any coverage and Bassler Holding Company/Bassler & Co reserves all rights.
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