If a business owner is sued by a person contracting coronavirus on their premises, a CGL policy may come into play as a protection. Additionally, for larger companies, the action or omissions taken by leadership could implicate protections under the directors and officers liability policies (D&O), whether actions from shareholders or others.
The marine insurance industry is subject to the contango market, which occurs when a commodity has unexpectedly weakened to the extent that the commodity’s market price is expected to be lower on delivery than it was when agreed within futures contracts. This could have implications on the marine insurance market for marine cargo insurance, marine hull insurance, oil traders’ liability insurance, charterer’s legal liability, and protection and indemnity coverage.
Unless the policy says otherwise, individuals infected with coronavirus can expect to be reimbursed for the costs of testing and treatment. Full coverage for the public health sector is occurring due to government efforts, whereby co-pays and deductibles are waived for any applicable testing. Coronavirus testing has also been deemed an essential health benefit within the meaning of the Affordable Care Act rules, including Medicaid. Employers with self-insured health plans are also modifying plans for those who seeking testing. The Centers for Medicare and Medicaid Services has also issued Medicare guidance which clarifies coverage ] for all coronavirus patients.
Coverage for the death of an insured resulting from coronavirus should result in full payment of benefits, which depending on the trajectory of the virus, could result in large payouts.
Policies issued before January 21, 2020, when the virus was widely reported in global media are most likely to cover claims arising from trips impacted by coronavirus. International plans exclude pandemic coverage if a travel warning is issued for the policyholder’s intended destination. Now, insureds stranded in those cities that have now a travel warning or are locked down may have reasonable claims for the cost of accommodations or flight changes. Even if the policy restricts the pandemic, it may also continue to cover unforeseen losses like lost baggage, personal injury, or weather events.
Business Interruption Insurance
The business interruption coverage that most companies purchase allows for recovery of lost income and expenses from an interruption event, but coverage requires that the interruption result from direct physical loss or damage to the insured property caused by a covered peril. It is not yet known if the coronavirus would fall under this category; however, there is some prior case law and legislative movement to suggest it will.