The Coronavirus is affecting every segment of our personal and business lives.
One of the major problems with the spread of the virus is that situations are changing minute by minute. The fluidity of the situation is creating more panic, confusion and potential for economic ramifications to businesses and individuals.
As these situations arise, the question is whether there is any insurance coverage available. It is important to remember that in all situations listed above that the reason for the disruptions is a virus and the ultimate answer as to coverage will be how the various policies respond to the “virus” and whether there is any compensational incident that occurred to activate coverage.
- Many businesses are voluntarily closing, either short term or for an unspecified period. This is being done as a pre-cautionary measure for public safety.
- Many businesses are closing or suspending operations because they are mandated to do so.
Immediate Insurance Policy/Coverage Recommendations:
- Make sure your workers compensation policy is based on monthly reporting. If not, you can update the payroll basis with the carrier for premium relief. Each carrier will react differently, but carrier may also be willing to make further concessions.
- Consult with your Broker regarding D & O policies. These are Duty to defend policies, which can be beneficial as suits which are outside of normal coverage areas, arise. We recommend all Companies maintain a D & O policy.
- Westlake Risk has recommend attorneys if you need assistance
- Consult with your Broker regarding the need for Employment Practices Liability if you have not done so already. If you already maintain coverage, verify your policy will cover class action suits. Most Employment Practice policies are silent on class action suits, which indicates this type of suit is covered.
- Verify all policies are in good standing with the carriers. Many carriers are allowing delayed cancellations to allow employers time to maneuver thru these difficult times. See carrier responses to the right