Insurance FAQ in regard of COVID-19
Is there business income coverage?
Before business income responds, there must be physical damage to property by a covered cause of loss. Additionally, there is a specific property exclusion for “virus or bacterium” and a “civil authority” exclusion, which means that if a government authority requires businesses to close, there is no business interruption coverage.
How does business office overhead insurance would work if I, the owner, close my practice due to the virus?
If the doctor/owner is diagnosed with the coronavirus and is quarantined and has a medical doctor certifying that they are medically unable to work due to symptoms of the virus, they would be eligible for the Business Overhead Expense (BOE) coverage and should file a claim.
If the doctor/owner has been in contact or exposed to the virus and is quarantined we would consider this a leave of absence and would not meet the definition of an illness defined in the policy.
Will my group office overhead income (OOH) policy provide benefits if the doctor contracts the coronavirus?
It’s possible, since OOH policies contain relatively short waiting periods. Not all policies or carriers are the same. The best advice would be to check with your carrier on the policy specifics.
Will my insurance company pay business income if I have to close my office?
Most likely, no, since business owner’s policies require “direct physical loss” in order to trigger a business income claim. When in doubt, file a claim since only your insurance carrier can make a final determination.
If an employee contracts the coronavirus, does workers’ compensation provide coverage?
An employee who contracts the coronavirus while at work might have coverage under workers’ compensation, but the burden of proof would be on the employee to prove the triggering event of the illness arose out of employment and occurred in the course of employment. Your insurance carrier will evaluate each claim on its own individual set of circumstances.
If I contract the coronavirus, will my long-term disability income (LTD) policy provide benefits?
It’s possible, but you’ll first need to satisfy your waiting period, which in most cases is 90 days. Check with your agent/carrier on your individual policy
Will my group short-term disability income (STD) policy provide benefits if one of my employees contracts the coronavirus?
It’s possible, since STD policies contain relatively short waiting periods. Check with your carrier on the policy specifics.
If we temporarily have to close business due to COVID-19, will we lose our healthcare coverage? Is there a way to keep coverage due to a layoff in this case?
Continuation of COBRA will be offered, it just depends on the office size and if the employee is coming back to the office. Policies are very different between the insurance carriers right now. It is best that you contact your carrier or the WDAISC.
Insurance Resources:
WDAISC and N-Tech Consulting Cybercrime Protection Guide
MedPro Group’s COVID-19 FAQs and Risk Resources
West Bend Mutual Insurance Company
Please do not hesitate to contact your team at Professional Insurance Programs at 414-277-0154 with any of your insurance questions.