Coronavirus and Business Interruption Insurance: Are You Covered?

COSTA MESA, Calif. - March 9, 2020 - PRLog -- Does Business Insurance Cover Coronavirus?

Many factors affect whether a loss would be covered by an insurance policy or not. The most important factors are what's specifically written in the business insurance policy and the named perils on that policy. It's also important to look at the employees who are also at risk of contracting the disease and a company's responsibility, such as insurance coverage for those employees. Below are coverages that may apply.

Workers Compensation

Let's look at workers. What if they get sick? With a workers compensation insurance policy, the business must prove that the loss to the employee happened over the course of employment. If coronavirus spreads and there is a public service announcement to stay home and you still require your employees to report to work and they get sick, you'd first get in trouble for ignoring the authorities, but it would be easier to prove that the work situation enabled the spread of the virus. Otherwise, it would be difficult to establish how someone who works for you got sick with the virus, especially if other workers remain healthy. If quarantining goes into effect, commuting to work may be classified as "traveling to infected areas" and workers compensation may cover an infected employee.

What Should I Do to Avoid a Loss with My Business's Workers Comp Insurance?

It's a good idea to familiarize yourself with the workers compensation laws of your state, so research areas where pandemics are highlighted. If coronavirus begins spreading like wildfire and reaches the point where traveling to and from the office may be considered a risky act, coronavirus will be classified as a pandemic. The workers compensation laws in your state may specify what you need to do if containment becomes a problem.

It's also important to immediately report any employee who seems to be infected. Sending that person home is not enough. It must be determined if that person is a carrier. Also, other employees who've been in contact with that person will need to be tested.

In the case with the woman in California who contracted coronavirus on a cruise ship, all other passengers were tested after her case was reported. Luckily they were healthy.

If your employees are scheduled to travel, or regularly travel for work reasons, and become infected, they would likely be covered by workers compensation.

If mass quarantines are enforced by law, business operations would come to a halt for many business owners. That's why it's important to get connected with a commercial business agent who can guide you through your options, like possibly buying ...(visit https://smartfinancial.com/coronacirus-business-interruption-insurance for the full article)