COVID-19: Business Insurance FAQs
The COVID-19 pandemic is creating chaos all over the world, presenting, not only severe challenges to health and daily life, but also financial and logistical problems related to the current state of our economy. Together, our Brokers Trust team and insurers are dedicated to working with you to help you in any way we possibly can.
We understand that this is a difficult time, which is why we’ve put together a series of FAQs to provide some quick insight on topics and issues that may affect you.
I’ve been ordered to shut down my business. Is there any coverage for business interruption during COVID-19?
Business interruption was never intended to respond to pandemics as it is generally triggered by a named peril such as fire or flood. The other main reason that there is no coverage is that there needs to be actual physical damage sustained to insured property, by an insured peril. However, each commercial insurance policy is unique so we recommend you speak with your Account Manager about what is included (or excluded) from your business interruption coverage.
We know this is a lot of information to take in – so we’ve put together a video for you on business interruption during COVID-19.
My projected sales will be reduced significantly due to COVID-19. Can I get a reduction in my insurance premiums as a result?
Primarily mid term revenue adjustments are not allowed, however during these new circumstances some underwriters are allowing it. Please contact your Account Manager to discuss further and in greater detail as each scenario will be treated per case basis.
We know this is a lot of information to take in – so we’ve put together a video for you on reduction of insurance premiums for your business.
How long can my business stay unoccupied/vacant before it becomes a problem for my insurer? What are my obligations to inform my broker about this and what may happen if I don’t?
Primarily 30 days, however if you visit the property at least once a week and document that visit – there should not be a problem.
We know this is a lot of information to take in – so we’ve put together a video for you on unoccupied and vacant facilities and businesses.
Will insurers reduce or remove coverages for reduced premiums?
Yes they will – however check your lease agreement with your landlord as certain coverage you may not be allowed to delete, like equipment breakdown or liability.
Is there an endorsement or coverage related to COVID-19 for outbreak that can be added for an additional premium?
There are specialty policies available through Lloyds that offer this coverage. Certainly, they are not for sale now.
These FAQs are to be used as a general guideline and may not be definitive to every situation. As our client, your needs are unique and should be discussed in detail with your Account Manager.
Your questions, answered. We’ve got you covered. Read more about our other FAQs.