Below is the latest update from iCAT regarding the current coronavirus epidemic and how it impacts your insurance.
ICAT is actively monitoring the information available with respect to the Coronavirus, and we are committed to providing timely information. With new information regarding the pandemic arriving frequently, we expect the crisis to continue to progress in the coming weeks. As the Coronavirus outbreak continues to develop around the world, it understandably raises questions and concerns for insureds who are facing likely interruption to their business and economic impacts due to the virus. Much of this disruption to business is likely to not be covered by insurance. As such, ICAT is sharing the following COVID-19 coverage guidance with our customers.
*PLEASE NOTE: This is not a legal explanation of any policy language. We recommend that insureds discuss specific policy and coverage questions with legal counsel.
Does my insured have coverage for COVID-19 impacts under their current policy?
No, it is unlikely that your insured’s current policy will provide coverage because property policy losses are prompted by physical loss and/or damage to insured property. Since the virus is not a covered peril and does not cause direct physical loss or damage to covered property, there is likely no coverage on your insured’s policy.
This COVID-19 event is generally excluded under standard policy exclusions (delay of market, loss of use or indirect/remote loss or damage). Most AOP policies contain a contamination or biological hazard exclusion which includes virus, disease or illness causing agents within the definition of contaminant. ISO policies, specific carrier forms and most manuscripts do not cover losses resulting from virus.
Does Business Income cover my insured?
No, Business Income coverage on a property policy is only triggered if the policyholder:
- suffers a direct physical loss or damage to covered property,
- the loss or damage is caused by a covered cause of loss,
- and as a result of the physical property damage, the policyholder is forced to suspend business operations.
Where can insureds purchase coverage for the COVID-19 pandemic?
ICAT is not aware of markets offering new coverage for losses resulting from the COVID-19 pandemic.
Is there Civil Authority coverage if the government requires my insured’s business to shut down?
No, Civil Authority coverage typically requires a direct physical loss or damage to a property other than the covered property, and the loss or damage must be caused by a covered cause of loss. Where there is no direct physical loss or damage, or, if the cause of the loss or damage is excluded, then there is no Civil Authority coverage.
Some carriers are taking steps to help assist policyholders. Click the button below to view our list of carriers offering specific assistance. We will update the page as carriers offer specific assistance. View COVID-19 Carrier Support Information