COVID-19 and Business Interruption
March 23, 2020
We are living in an unprecedented time in US History. We have not had an outbreak to this extent since 1918 when the Spanish Flu was sweeping across our country. In the past few decades, we’ve survived smaller outbreaks such as MERS, H5N1 (Bird Flu), H1N1 (Swine Flu), Ebola, SARS, etc. Hopefully we’ll get through this quickly and our lives and businesses get back to normal.
Securus has received many calls and emails this past week asking how their insurance policy relates to our current pandemic, COVID-19. Specifically, is there coverage by the policy through Business Interruption to cover losses to your business? Certainly, business have been interrupted! In addition, several businesses are now shut down due to Government Order. Under the Business Interruption form, three conditions must exist for coverage to be triggered:
1. The business has suffered income loss
2. The loss must result from a direct physical loss or damage at the described premises
3. The loss must be a covered cause of loss
Unfortunately, contagious illness, such as COVID-19, does not cause a physical loss or damage to property at a business. Further, most insurance companies adhere to standardized coverage forms in our industry called ISO. ISO excludes coverage from bacteria and virus as a covered cause of loss. The result is that a standard ISO commercial insurance policy will not cover Business Interruption for Bird Flu, Ebola, COVID-19, SARS, etc.
Here are some suggestions by way of assistance to your business:
1. If you need financial assistance, please contact the SBA and apply for their help. You can get information here: https://disasterloan.sba.gov/ela
NOTE: One of our clients reported that the website for SBA assistance is a work in process and tends to crash a lot. Please exercise patience and have your document ready!
2. Several Insurance Companies are now offering an extended “Grace Period” for premium payments. If you are having difficulty making your premium payment, please contact Securus and we can provide you details with your specific Carrier and Policy.
3. Please click HERE to see a letter regarding Securus’ operations during the Ohio ‘Stay at Home’ policy being enforced on Tuesday, March 24, 2020.
On behalf of our Staff here at Securus, stay safe and healthy. We are here for you to assist you in any way we can. Please reach out!
Office: (330) 653-9897