Recent questions from a client about corona virus and insurance coverage:
Q: In the event we are required by the government to close down for coronavirus, are we covered for loss of income?
A: This would fall under the Governmental Action exclusion on the Businessowners Coverage form.
Q: Is there any way to buyback the coverage?
Q: What if we were forced to close due to outbreak of flu but without government intervention?
A: It appears that the Exclusion of Loss due to Virus or Bacteria form would mean we would not provide coverage if the insured was forced to close due to the outbreak of flu.
Doing more research online, we found this on the Insurance Journal in respects to WC coverage:
Workers compensation insurance policies generally cover occupational diseases and injuries, i.e., those that: (1) are due to causes and conditions that are characteristic of and peculiar to a particular trade, occupation, or employment; and (2) are not an ordinary disease to which the general public is equally exposed outside of employment.
There are, however, instances in which “ordinary diseases” may be covered if it is possible to establish a direct connection between the workplace and the circumstances through which the disease was contracted. For example, if an illness is triggered by an event at the workplace and directly flows from the work that is being performed, it may be argued that the resulting disease has been the result of an accident causing bodily injury. The coronavirus is spread by respiratory droplets and is so highly contagious that health care workers are wearing full hazmat suits while treating those infected. Accordingly, if it is determined that an employee contracted the virus at work, it is quite likely that workers compensation insurance would respond to the injury. Of course, in such a situation, the business’s primary concern would be protection of its employees and the public from any other contraction of the disease, with insurance issues to be resolved in due course.