The COVID-19 has created uncertainty and concern for many of our customers. The purpose of this communication is to provide you with an overview of potential coverage claim triggers and considerations to be aware of.
The insurance coverages most likely to be involved with virus-related losses are:
- Business Income – The suspension of operations must be caused by direct physical loss of or damage to property at the premises described in the declarations.
- General Liability – The policyholder must be legally obligated to pay for damages because of bodily injury or property damage. Due to the complexity of liability claims, a thorough review of the facts and circumstances of the loss is required before a coverage determination can be made.
- Workers Compensation – Any potential claim must arise out of the worker’s employment and be in the course and scope of employment when exposed to the virus. When and where exposure to the virus occurred will be a key determination.
Because each loss will have its own specific set of facts and circumstances, we won’t speculate on hypothetical coverage scenarios however, the continually changing nature of this situation makes it imperative that any potential claims be referred directly to the Claims department for a complete review and coverage assessment.
At this time, we have not heard of any insurance carrier providing coverages for this current scenario and as a result we fully expect the claim to be denied. As the situation works its way through legislation and the court, there may take a different direction on available coverages. We are advising to clients to report your claim in order to reserve your right if anything changes in the future.
Please keep anything that you my offer as proof of loss in case this may take a different turn in the future. This would include the items below but not limited to.
- Dates you’ve been closed or the decline in revenue.
- Net profit you may be losing on a day to day basis.
- Ex. financial documentation to valid such loss
- 2019 compared to 2020
- Cancellation reports
- Lost or canceled orders
- Any other documentation that you feel may assist in supporting your claim
Please rest assured that the market is always changing, we will continue to provide as much information as to any changes in interpretation by the insurance companies, courts, and the government.
Please click this link Claim Form to initiate a claim on your behalf. Please include:
- Best contact name, phone, address and email
- Estimated date of loss
- Potential loss amounts the best you can tell
Thanks as always for allowing Synergy Insurance Group to serve you and your insurance needs.