Is your business affected by the coronavirus and will your insurance policy respond? March 10, 2020

The outbreak of coronavirus (COVID-19) has been declared a public health emergency of international concern by the World Health Organization

While international communities are taking measures such as early detection, isolation, contact tracing and social distancing in an attempt to mitigate the spread of the coronavirus, businesses are taking their own measures by thinking about contingency plans for the devastating financial impact the coronavirus may have (if not already) on their operations. Accordingly, questions are often arising about whether existing insurance policies would cover coronavirus-related losses and the risk that businesses face.

The first step in assessing a business’s exposure is to assess the range of losses the business may face from the coronavirus and to review existing insurance policies to determine if such policies provide adequate coverage with respect to such losses. Many companies have an array of commercial insurance policies which may respond with insurance for the types of coronavirus losses likely to be experienced. The scope of coverage of such policies is dependent on the specific terms of each insurance policy and needs to be carefully reviewed to determine whether those policies can be accessed to cover business losses.

Commercial policyholders are therefore encouraged to closely review the terms and conditions of their policies. If you require assistance with identifying the potentially implicated coverages or reviewing terms and conditions of policies to determine the scope of coverage, please contact Don Brookes of our office.

DISCLAIMER: We accept no responsibility for any action taken after reading this article. It is intended as a guide only and is not a substitute for the expert legal advice you can get from marshalls+dent+wilmoth and other relevant experts.