As of March 10, 2020, the CDC says\u00a0Coronavirus risk is still considered low in the United States, but a significant spread of the disease is likely, even expected. Savvy business owners are concerned about their business and profit over the next few weeks, and questions arise about their insurance coverage for these unusual types of losses.<\/p>\n
Insureyourcompany.com<\/a>\u00a0is here to help. We’ve put together a\u00a0blog<\/a>\u00a0explaining the CDC’s current expectations as they relate to businesses and special events. Then we’ll talk about the coverages you might have in place to safeguard your earnings. As always, you’re welcome to reach out to us at 888-242-4675 if you have questions beyond the scope of this article and need to speak with a licensed insurance agent.<\/p>\n Per the CDC, the widespread transmission of Coronavirus will probably lead to large numbers of people needing medical care all at once. Whether voluntary or government-regulated, quarantines will almost certainly reduce consumer activity.<\/p>\n The CDC notes that other critical infrastructure, like law enforcement, emergency medical services, and the transportation industry may also be significantly affected.<\/p>\n This leads us to the ultimate question of the day: Does Your Commercial Insurance Policy Cover Losses From Coronavirus and Quarantines?<\/strong><\/p>\n Some\u00a0commercial policies<\/a>\u00a0(not all) provide loss of use coverage, but it may be on a named peril basis. In other words, if your business was to burn down, and it takes a year to rebuild after the fire, you’d likely be covered for loss of use. In that case, your insurance company would pay you for the income you’re losing that year and in many cases it would pay your employees usual wages too.<\/p>\n But is an\u00a0epidemic or pandemic<\/a>\u00a0covered?<\/p>\nThe CDC Expects Widespread Transmission of Coronavirus in the US<\/h2>\n
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Understanding Basic Loss of Use Coverage<\/h2>\n
Business Interruption & Contingent Business Interruption Coverage<\/h2>\n