The global spread of COVID-19 has made 2020 a challenging year for many businesses across the world. More specifically, the pandemic has disrupted business operations in almost every industry. Of course, supply chain issues and business interruptions can potentially expose business insurance policyholders to business-related lawsuits. But for this reason, as a business owner, you should make every effort to understand how COVID-19 can affect your business insurance policies and, if necessary, review your business insurance coverage accordingly.
An insurance coverage review will help you determine whether or not your existing policies are adequate to protect your business against potential coronavirus-related losses. In essence, this means that now is the perfect time to review your business insurance. As you review your business insurance coverage, pay particular attention to the following policies:
Analyzing Business Insurance Coverage – Commercial Liability Coverage
As a business owner, you have to accept the fact that someone, including your customer or employee, may allege that they contracted COVID-19 at your business premises due to your business’s negligence. In such a situation, general liability insurance would come in handy.
Also known as commercial liability insurance, general liability insurance protects your business against the financial losses associated with, among other things, personal injuries, bodily injuries, medical expenses, damage to third-party property, and litigation. Of course, before claimants can receive compensation, they have to prove your business operations, services, or employees were liable for this injury or property damage. In regards to COVID-19, your general liability insurance should not only provide the necessary coverage but also allow you to defend COVID-related claims.
Directors and Officers (D&O) Coverage
If your business fails to respond appropriately to coronavirus concerns, your business’s stakeholders, including shareholders, could sue your business for negligence. For instance, the stakeholders could allege your business failed to develop and implement adequate COVID-19 contingency measures or details regarding how the pandemic could impact the business’s financial performance. It is worth noting that most (D&O) insurance policies exclude bodily injuries.
However, depending on the nature of the allegations, it may offer some level of coverage. For this reason, when analyzing business insurance coverage, you should review your D&O policies to ensure your business has enough coverage to deal with a COVID-related incident.
Workers’ Compensation Insurance
Generally, most workers’ compensation insurance policies typically exclude contagious and communicable diseases. In other words, claimants only receive benefits if the illness in question is occupational in nature. However, compensation considerations generally vary from state to state and are likely to come into play for a COVID-related claim.
In general, a claimant will receive benefits if they can prove their illness is work-related. For example, an airline employee that contracts COVID from a passenger is likely to receive benefits. Similarly, a health worker that contracts COVID from a patient is also likely to receive benefits.
When analyzing business insurance coverage, pay close attention to the aforementioned policies. For assistance with your insurance needs, contact the experts at Promised Land Insurance Group. We are happy to help you with all your coverage needs and questions.