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Insurance Claims during COVID 19

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aturrell
Posts: 28
Joined: Tue Feb 20, 2018 4:05 pm

Insurance Claims during COVID 19

Post by aturrell » Mon Mar 23, 2020 11:32 am

This string includes anonymized responses from MAPP members, and should be utilized as a place to ask questions and share experiences in regard to filing insurance claims due to COVID-19.

aturrell
Posts: 28
Joined: Tue Feb 20, 2018 4:05 pm

Re: Insurance Claims during COVID 19

Post by aturrell » Mon Mar 23, 2020 11:33 am

[Member response] If the virus finds its way to your plant, you might want to consider filing claims with your insurance carrier (unless you have a biological agent exclusion in your policy).

A strong argument can be made from court decisions that property damage has occurred in places where the virus is present. You don’t need to show actual structural damage to your facility. You can seek recovery of your lost income because of business interruption, damages to your customer, and income you lose because of government evacuation orders.

Insurers are going to try to balk on this right now because the losses to them will be in the billions. They will argue that the virus is limited in time so you only get coverage for the short time necessary to clean your plant. But, if there is recontamination, the coverage under your policy continues. Regardless, a review of your policies may be appropriate here as you look for pools of money to alleviate some of your hardship.

aturrell
Posts: 28
Joined: Tue Feb 20, 2018 4:05 pm

Re: Insurance Claims during COVID 19

Post by aturrell » Mon Mar 23, 2020 11:34 am

[Member Response]
I also spoke with my insurance agent and she said that most commercial policies do not cover business interruption coverage for COVID-19. She said the virus exemption was added in 2006 after MERS. I wasn’t happy about this but she said the laws may change considering the current global economic climate. I also was told that our business interruption coverage wouldn’t take effect in a government ordered shut down.

[Advice from Member]

As for your insurance policy, typical broker push back. She may be right on the exclusion, but some exclusions are just limited to bacterial issues (versus viral which is what the COVID 19 is).

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