The Coronavirus and Its Impact on Insurance
Over the course of the past few weeks, the Coronavirus has quickly shifted from a story we were following in the news to a very real threat facing our businesses and our families. It has upended industries around the world, and as the disease spreads, so does the impact on businesses worldwide. From the airline and cruise ship industry, to hotels, casinos, sports and even the Olympic Games, we are only just seeing the beginning stages of the Coronavirus impact.
From business interruption to event and travel cancellations, Insurance carriers around the world are bracing for an influx of claim activity. But is there coverage? As is the answer in almost all coverage questions, it depends.
Claims for some policies, such as health and life insurance will be covered. But as businesses voluntarily close down to prevent the spread of the virus, a significant number of claims will likely come under business interruption. Determining coverage though, could prove to be elusive, since there must be physical damage to property to trigger this coverage. Workers compensation claims need to be occupational and in conjunction to the employee’s work or activities. The question will be if the employee can prove they were in the course of their employment when they contracted the virus.
Most travel insurance policies cover trip cancellation and interruption. But coverage may depend on where you are in terms of your trip. If you’re in the middle of your trip and your plans are disrupted, most likely there is some coverage. But if you’re afraid to travel because of possible exposure to coronavirus, in all likelihood, that would not be a covered loss.
Obviously, this is still a developing situation, and while the worldwide economic impact will be devastating, it’s people who are paying the price. Stay safe by following these simple recommendations put out by the Center of Disease Control, (CDC). Wash your hands regularly, avoid touching your face with unwashed hands and use a tissue for coughs and sneezes.
Kevin Connors is a Certified Insurance Counselor and Licensed Property/Casualty and Life Insurance Agent with The Connors Insurance Agency in Mechanicville, NY. Mr. Connors can be reached at (518)664-7307 or This email address is being protected from spambots. You need JavaScript enabled to view it.