COVID-19 & Your Insurance Coverage

March 20, 2020Insurance InfoBy Riley Britton

As we are all aware, COVID-19 is now impacting the daily routines in Texas. The health and safety of our families and employees is our top priority. In response to the requests of federal, state and local agencies and to avoid unnecessary risks to our employees we are prepared to provide uninterrupted services during our regular office hours.

We will expand our remote working plan to include all personnel whose responsibilities can be effectively and securely performed offsite. All business functions will remain operational as of this time. Be assured that we are here for you and able to continue quoting, binding, renewing and providing quality telephone service and responsiveness.

We understand that a number of our clients may be affected by the spread of the coronavirus and some of our insurance companies are prepared to help address unanticipated financial hardship they may be facing as a result. Including the possible movement of billing due dates help and assistance with billing and payment issues. Please contact us if you are affected and we can determine if your insurance company has the ability to adjust your billing needs.

Some of our dedicated after-hours service team members are still available 24/7. Keep in mind that you also have access to your business, auto, renter and home owners policy information any time through online servicing. Visit our “Contact Us” page to view login links and phone numbers for our insurance partners.

We’ve received several phone calls regarding coverage questions, mostly related to commercial policies. We are happy to discuss specifics of coverage anyone has but there are a few basic statements we can make regarding coverage. Does the Coronavirus create a claim? The short answer is, “not likely.” Communicable diseases typically are not a covered. Generally speaking, covered losses have to have a direct physical loss to the location, so a fire, a tornado, a truck driving through the building, etc.

It is possible on your commercial property insurance to extend coverage to include coverage for loss of business income due to a closure of your business caused by a covered peril. A communicable disease like the Coronavirus may not be a covered peril, but you should not allow that assumption to keep you from taking action.

First, it is critically important to report all claims and potential claims to EACH AND EVERY CARRIER whose policy might apply to your loss. This includes CGL, Personal lines, Umbrella, Excess, Workers Compensation, Specialty and any other policy you may have.
Second, you need to determine whether you purchased business income coverage. If you don’t find the coverage in your policy description, be sure to call our office.
Third, if your business closes due to the Coronavirus, it is important to know (again) that communicable diseases typically are not a covered peril that would give rise to insurance benefits for loss of income. It doesn’t matter if the loss of income is just from a downturn of business due to the loss of many customers or the actual closure of your business.

You should still report all claims and potential claims. We believe this hiatus will be temporary and we will continue to update you as the situation evolves. In the meantime, we encourage you to email your personal Britton and Britton insurance agent if you have any questions.

Ultimately coverage is up to the insurance company and the interpretations of the policy in a claim scenario. The policy terms prevail.

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