As part of a series discussing the impact of the COVID-19 crisis on various businesses and industries, our President Paul Barber authored an article for Business Alabama magazine sharing his insights into the impact of the outbreak on the insurance space.
Regarding commercial insurance:
“Companies are concerned about their business insurance coverage and exclusions and how to avoid missteps. All indications are that the hardening insurance market will continue despite COVID-19, as carriers compensate for lost revenue due to companies closing and declining investment income to pay for losses.”
Many businesses hoped their business interruption coverage would protect them during the recent shut downs.
“While every policy is different, in general, business interruption (BI) is not triggered. In the case of COVID-19, there is neither a physical loss nor is COVID-19 a covered peril. Businesses (and plaintiff’s bar) are questioning whether the definition of “contamination” meets the test of physical damage. Courts might ultimately determine whether to apply exceptionally broad interpretations to stated policy language.”
Our Employee Benefits Practice sees the crisis from a different angle, namely from a HR and ACA compliance perspective as changes in workforce have been needed or new health plan requirements put in place.
“New regulations, including the FFCRA and CARES Act, are complex,” said Paul. “Companies need guidance to implement required leave and medical coverage. In addition, some employers must shut down and furlough or terminate employees, impacting benefits eligibility, ACA compliance and other legal requirements.”
To read Paul’s full response, check out the Business Alabama article here.
|Check out our COVID-19 Resource Center for more resources and information.|