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Coronavirus Update - Tuesday Morning Insurance Tidbit


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Healthy Tuesday Morning to you all,

     I truly hope my post finds you doing well and staying that way.  The most important thing during these uncertain times is to remain positive.  I know that with all is going on in the world and the economy, and businesses being shut down, it is sometimes hard to find things to remain positive about, but they are still out there.  For one, it is St. Patrick's Day.  That is a good thing!!!  Maybe grab yourself a "Black & Tan" or a "Guinness", and focus on the day and all that you do have to be thankful for.  Cheers to you, my friends.

     As I sit here in my lair of solitude, or as I know understand it to be known, "My lair of social-distancing", I am being inundated with questions and emails from clients and carriers alike.  People have been asking and continue to ask, "What if we are shut down due to this virus?  Is there some type of insurance coverage that may kick in?"  Carriers have been sending out a flurry of informational emails that also speak to this topic and I wanted to share those with you here so that you can arm yourself with information as well.

     At this point in time, the insurance industry as well as specific carriers have been providing information in regard to Business Income (a.k.a. Business Interruption) & Extra Expense (hereafter known as BI/EE) coverage.  This coverage is meant to provide for ongoing expenses and income reimbursement in the wake of a "covered cause of loss" that results in a business being shut down or slowing in sales as a result, as well as several other factors.  The issue here is the definition of a "covered loss" or a "named peril".  Currently, a pandemic, such as the Coronavirus, is not necessarily a covered loss or peril.  Most policies have a Disease Exclusion, but even if they do not contain that specific language, unless your facility has been contaminated and deemed "inhabitable" or "not able to be used as intended", there is no coverage applicable due to this virus.

     I know that this is not necessarily the news you were hoping for, especially if you are in on of the states that is experiencing a mandatory shutdown of bars, restaurants, and other business, (or gatherings of over 10 people ... REALLY!) but keep in mind, I am here to assist you in whatever way possible, and I am just wanting to communicate the information to you so that you can arm yourselves with knowledge and know what to expect.  I have also gone out to several different carriers and asked them about the possibility of coverage under the "CIVIL AUTHORITY" aspect of the policy.  Again, unless there is a shutdown of an area due to a "covered 'loss'", BI/EE coverage would not apply.  

     Let's say for instance that you are in a multi-tenant building and your neighboring business has been identified as property that has been contaminated by the Coronavirus and is therefore shutdown.  Due to the fact that you may share ventilation (maybe), or perhaps a common lobby area or some-other-such "commonality", your business is now shutdown due to civil authority.  This may be a BI/EE claim due to the fact that they have shut you down in order to determine if the virus has spread to your property.

     At the end of the day, we could sit and come up with a billion and one different scenarios in regard to this pandemic and the potential impacts that it is having around the US, and the world.  In the end though, it would all just be speculation and "what-ifs" and not result in any certainties.  As I have said in prior posts, and I will say again here, when in doubt, file a claim.  If you feel there is legitimacy in filing a claim, then do so.  That is why you have insurance.  Hopefully, armed with this information, it will assist you with knowing where you stand in the process.  Until next time dear readers ...


Stay Vigilant (and healthy.  WASH THOSE HANDS),

Aaron Linden

a.k.a.  InsuranceMan 2.0!!!


aaron@roaringforkins.com       or      insuranceman2.0@yahoo.com

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