As the pandemic known as COVID-19 reaches a new status, the world looks ahead to see how this will impact the global economy. Will businesses be able to bounce back and recoup lost revenue?
By being proactive and managing the risk appropriately, you could mitigate the impact of COVID-19 on your business operations. The World Health Organization has many resources available including this document on how to get your workplace ready for COVID-19.
Business Interruption Coverage
From an insurance perspective, business interruption coverage is typically triggered by a property damage loss caused by an insured peril of which a pandemic, such as COVID-19, would not qualify. Having said that, some policies include extensions to business interruption that might respond to the loss of business income without property damage, such as:
- Restricted Access Coverage: is triggered when an Order by Civil Authority restricts access to your location.
- Negative Publicity Coverage: is triggered when your business is subject to negative publicity due to an outbreak of a contagious or infectious nature.
Please Note: these types of extensions are usually restricted by time, distance and maximum limits.
Your best course of action is to review your policy wordings with your broker to understand what coverage you might have, as we all know, not all policies are created equal.
What are businesses doing to "weather this storm"?
Prepare and don’t panic. Read this whitepaper created by one of our insurance carriers, Ecclesiastical, to assist you in developing a pandemic response plan. An accompanying self-assessment checklist was also created that allows organizations to understand their current level of preparedness.
Your Disaster Recovery Plan
Have you reviewed/updated your disaster recovery plan for these circumstances? We have tools that can help navigate your business in creating a plan for your operations. Contact us or click here to read more.
Your broker can help you to understand the wordings and extensions that could respond in the event of COVID-19 impacting your operations. We're here to help answer any questions you may have.