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Answers to COVID-19 Business Insurance Questions

COVID 19 Business Insurance Questions

The COVID-19 outbreak represents an unparalleled disruption to our economy, and as a result to small businesses throughout the United States. Business owners will be scrambling to respond to the rapid changes. Of course, there will be many questions regarding business insurance protection.

If you have business insurance questions, we are steadfast in our commitment to assist. If you’re an existing customer or not, will work to help you through the upcoming challenges. An IronPoint agent or service team member is ready to assist.

To the best of our ability, we will continue to monitor the best sources for useful and accurate information, and help you minimize the impact the pandemic will have on your business, your employees and our shared livelihood.

If you need immediate assistance, it is always best to contact your insurance carrier directly. If you prefer our assistance, you can contact us during our normal operating hours of 9:00am – 5:00pm Pacific Time, Monday – Friday.

We’re all in this together and we’ll do what we can to be there for you in this very trying time.

Does my policy’s business income coverage protect me if I’m temporarily closed due to COVID-19?

Unfortunately, if you’re looking for relief for a COVID-related closure, business income protection may not be your solution. Typically, to establish a business income claim, there needs to be physical damage to the business or insured buildings. In fact, virus, bacterium, or other microorganism are generally not considered “covered perils” under business income. Business income protection, unfortunately, is not designed for pandemic related shutdowns.

What does business income protection normally cover?

If you’ve purchased business income coverage, and it’s not providing benefits during a COVID-related shutdown, you may be wondering what it does cover. Well, business income or business interruption coverage is offered as part of your commercial property policy, or by endorsement with a business owner’s policy.

When a loss is covered, business income can provide benefits for lost income. Typically, in order for a loss to be “covered,” there needs to be physical damage to the business or business owned buildings.

Example: A restaurant burns to the ground and can not reasonably generate revenue. Business income protection provides a form of benefit that can replace lost revenue during the interruption created by the fire damages. The amount and qualifications of the coverage are controlled by the policy.  Note: this is simply an example, and only the carrier, insurance adjuster, or the policy can determine when coverage is applied.

What if the government shuts down my business?

Unfortunately, most policies are not designed to provide coverage for the acts of a “civil authority.” This would include any recent “shelter in place” orders that may have resulted in your business being temporarily close. 

While insurance may not be a source of benefit if your business is shutdown,  disaster relief loans may be available. If your business has been affected by recent mandatory closings due to COVID-19, contact your business banker. They should have all the information you need to submit an application.

If an employee contracts COVID-19 at work, can my business be liable?

If an injury or accident happens during the course-and-scope of work, your worker’s compensation insurance is the appropriate source to seek coverage. However, under normal circumstances, workers compensation would require the affected employee demonstrate that the injury or illness occurred as a direct response to their employment. If it cannot be established that an injury or illness has a proximate cause related to their employment, then a claim may not be likely.

Do you currently have a COVID-related employee claim? If you are unsure about the nature of a potential claim, you should contact your insurance company and file a claim.  In fact, knowledge of a potential claim requires you to report it to your insurance carrier, this allows them to quickly begin to assist you in mitigating further damages. In the case of COVID-19 related matters, it may also help you understand if you have any liability.

Are there any business insurance solutions for COVID-19?

Unfortunately, business insurance carriers don’t have any products that explicitly deal with pandemic occurrences. This would include COVID-19. Therefore, the small business owner will be left to deal with this matter utilizing federal and state response funds and programs. 

As a business operating under similar hardship, IronPoint understands your concerns. We recommend you follow some simple rules to help mitigate your businesses exposure:

  • Limit employee interactions. If it’s possible, allow your employees to work from home.
  • If employees have to come into the office, apply all recommended social distancing protocols.
  • Cancel an upcoming travel or networking events.
  • The CDC will provide guidance, follow their direction and enforce strict compliance within your organization
  • If possible, utilize curb-side or home delivery services

Claims, coverage inquiry, and certificate resources for our customers

How is my insurance company responding to COVID-19?

As each insurance company has different ownerships, each is handling the COVID-19 pandemic differently. We encourage you to visit your insurance company’s website to see how they’re responding to the outbreak.

Does my insurance company offer any discounts or payment relief for businesses impacted by COVID-19?

Your insurance carrier may offer special exceptions to payment, reinstatement, and cancellations. Once again, check your insurance company’s website often for the latest information.

How do I file a claim?

You can file a claim directly with your insurance carrier. You can find the resources to file both personal and business insurance claims on our website.

Claims Information

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