Insurance Coverage FAQ (COVID-19)

As there has been a high surge of inquiries regarding insurance coverage during this pandemic, we thought it would be helpful to post a short FAQ for your information.

A. If there's no insurable interest, it's non-insurable. However, those temporarily closed businesses may be exposed to vandalism and fire related losses as well as insurance requirements per the lease contract with the landlord. Determine the insurable interest first then decide whether to renew or keep the policy in-force.
A. Generally, each carrier has their own reinstatement procedures and grace periods vary from 5 to 15 days. After that period, the policy can only be considered for a re-write.
A. In general, business interruption insurance protects against "direct physical loss" of or damage to insured property by a covered loss. If property damage has resulted in a loss of business, then you should consider filing a claim with your property insurer. For COVID-19 related claims, insurance carriers may dispute whether a "direct physical loss" has occurred. Some states have expanded the definition of "physical loss" to include contamination or other causes, which render something unfit for its intended use; others have not..
A. Yes, most carriers will consider property renewal then allow GL to be added at a later date subject to confirmation of no loss. However, most BOP carriers require Property and GL to be combined and they will not consider stand-alone Property.

A. We recommend that you contact the billing department of the insurer(s) directly to describe your situation and discuss payment options. It is possible that the insurers can accommodate adjustments to your billing plan, but they also may require the payments to be made in accordance with the terms and conditions already in place. If changes cannot be accommodated, we recommend discussing options with your bank and other financing resources directly, as direct billed policies cannot be premium financed.

Just recently, insurance regulators in several states have mandated that insurers eliminate cancellation for non-payment or extend premium payment grace periods. Depending on your state, this may provide additional breathing space.

A. Yes, quotes may be extended up to 60 days upon request. Please note that a signed No Known Loss letter may be required upon binding.
A. Not all audits and inspection requests are automatically extended during the pandemic but many carriers are accepting extension requests. Please be sure to send us your extension requests in writing.
A. Report it to your insurer. Timely reporting is critical to preserving your rights under your policies. We encourage you to report any claims directly to your insurer(s) as soon as practicable and in accordance with your policy terms.
A. There is much speculation about the potential outcomes of COVID-19-related claims, and many respected sources have commented on the issue. These opinions provide general guidance about potential insurance coverage and issues insureds may face. Coverage will ultimately depend on the specific facts of the claim, the policy language and applicable laws. The only way to know if an insurance carrier will pay out on a claim is to tender a claim.
A. Coverage for COVID-19 will depend on the specific facts of the claim, the policy language and applicable state laws. Moreover, actions taken by federal and state authorities in response to this pandemic are continuously changing and may impact insurance coverage. Timely reporting is critical to preserving your rights under your policies. We encourage you to report any claims directly to your insurer(s) as soon as practicable and in accordance with your policy terms.
A. This information is in your insurance policy, typically in the Declarations section (the first few pages). Still can't find it... call us!
A. We encourage all insureds to review their policies. Terms to look for include, but are not limited to: virus, disease, infectious/communicable disease, bacteria, fungi, mold, contamination/contaminated and pandemic.