The economy of the entire world will be affected in the coming years as a result of the coronavirus. Multiple experts are trying to speculate the amount it will take to recover from these effects, as the COVID-19 cases keep raising daily.
Some people have different concerns, though. They are worried about what effects the coronavirus will have on their business and are fearing a potential situation where they won’t be able to protect their company against losses. They are also worried that they will have to pay for those losses themselves. As a result, there are various questions about whether business insurance will help or not.
So, are there any types of insurance coverages that will keep your business safe during the coronavirus outbreak? There are three of them that you may want to look into.
- Supply Chain Insurance or Contingent Business Interruption (CBI) Insurance
During the COVID-19 outbreak, your business might experience supply chain disruptions. If this happens, you may be worried about the losses you will go through as a company. Thankfully, there is the Supply Chain Insurance or Contingent Business Interruption (CBI) insurance. This type of insurance will help cover potential losses you may be dealing with because of chain disruptions. As a result, you may be covered for raw materials, components, finished goods, or supplies that should have been delivered, but now are not due to the government’s measures.
As such, if you bought a CBI insurance for your business, then your economic losses will be covered. Also, it’s important to know that there are many moments when this type of insurance coverage will ask the supplier to mention what type of property damage the insurance will cover in the first-party policy of the business. Basically, if a business is closing due to the coronavirus outbreak, then it may not be considered “property damage” – but if someone gets contaminated, then it will damage the company.
- Business Interruption Insurance
In many cases, business owners consider purchasing a Business Interruption Insurance to be able to deal with the losses resulting from physical property damage. The physical damage should lead to the shutdown of the operation so that you can get coverage from the insurance. However, it is important to note that if a business closes because of the pandemic, it will not be considered “physical property damage”. There are a few exceptions, though.
If the property of your business experiences some contamination, then it will be considered physical damage. Sadly though, some insurance companies added certain exclusions after the SARS epidemic – exclusions that are more specific and are related to viral and bacterial infections. Viruses are different than bacteria, though, so look over your policy. If the policy specifies that it excludes coverage for bacteria, then at the very least you may get some coverage for COVID-19.
- Event Cancellation Insurance
The third type of insurance is the Event Cancellation. As a business, you were maybe planning to host certain events. But now that a lockdown is in place because of the pandemic, you cannot host them anymore.
This coverage is a pretty common one when it comes to event planning, entertainment, and sports industries. As such, there are usually parts of the insurance that specify coverage for infectious diseases. So, if you work with a good insurance company, then you may get some coverage for your event cancellation that resulted from the COVID-19 pandemic.
Sadly though, in the last few months, there have been insurance companies that started to exclude the coronavirus disease from their policy. It is very likely that your policy contains this exclusion as well, especially if you bought the insurance after December 2019. So, if you’re looking to get some coverage, check out your policy and make sure there is no such exclusion.
This pandemic is tough, particularly for businesses. Many are dealing with closures or supply chain disruptions as a result of the coronavirus. Paying out of your pocket for the losses would be too much, so you might consider using the insurance that you bought in order to cover the losses. Although some insurances are good, not all of them will cover for the COVID-19 pandemic.
If you are still looking for good insurance to help you out with this, you could consider a professional company such as www.mykeymaninsurance.com. They might offer the convenient coverage that you are looking for.