On April 29, Kevin Sullivan from the National Trust Insurance Services joined Preservation Leadership Forum for a webinar "Leveraging Insurance to Aid Your Organization During the Coronavirus." This webinar discussed a wide variety of insurance and risk management related subjects that may help organizations during this time of crisis. Kevin covered a range of topics including, Business Income/Interruption insurance that may be available, how organizations could be protected with General Liability coverage, Workers Compensation in relation to the coronavirus outbreak, and how staff downsizing can be protected via Employment Practices Liability insurance.
You can watch the recording above, and check out the additional responses to questions from the webinar below.
What actions are being taken by the government to overcome Business Interruption insurance claim denials, and are there new Insurance Services Offices (ISO) policy forms are being created to address COVID-19 related income losses?
I am unaware of any specific legislation being discussed that would address this Business Interruption issue, although I suspect specific proposals have been drafted around this topic So far, only anecdotal comments from the President and from Congress/Senate members have arisen about this topic. As for ISO... I have not seen any specific forms being introduced. It's likely too soon for that.
The case laws you refer to in your presentation assume the presence of the virus on the insured's premises, however in our current situation most businesses never had an occurrence of the virus on their premises. Are most attorneys relying on Civil Authority with regards to the coronavirus, ensuring evidence must be in place to substantiate that the virus was on premises and caused the income loss?
Correct, the case laws I used as an example were not a perfect comparison (there is no perfect case law comparison to what we currently face). With respects to Civil Authority, the conditions for coverage are the same as normal Business Income. There needs to be a "direct physical loss" in the area/community (the direct physical loss is what needs to cause the Civil Order).
Our organization cancelled our main fundraising event this coming November. Would this be considered a loss of revenue for insurance purposes?
It depends. This would be covered by Business Income insurance IF the business income claim (for COVID) is covered by the policy. If the Business Income claim (for COVID) is not covered by your policy (because of no direct physical loss, etc), then it would not be covered.
Could unexpected expenses related to hygiene (Personal Protective Equipment, sanitizing, etc.) be covered by insurance?
Similar to the answer above, it depends on the terms of your policy. This would be covered by Business Income insurance IF the business income claim (for COVID) is covered by the policy. If Business Income is not involved (because of no direct physical loss, etc), then it would not be covered.#Webinar#insurance#coronavirus