This message regarding COVID-19 was posted in response to the number of questions we have been receiving from agents about coverage due to loss of business income from COVID-19. It is meant to be a resource for agents.
Keep in mind that your duty as an agent is to your customer.
If you have an insured that would like to file a claim, please send us the Acord Property loss form and we will report it to the appropriate carrier. We do not make claims determinations here at Vintage nor should you.
As we all travel this unknown territory of the Coronavirus together and businesses shut down or restrict their actions many questions arise. For us in the insurance industry, the question on Property policies with Business income coverage is “Is there coverage under the policy for my loss of income due to the Coronavirus?
As always, the policy holds those answers.
From the Business Income coverage form:
We will pay for the actual loss of Business Income you sustain due to the necessary “suspension” of your “operations” during the “period of restoration”. The “suspension” must be caused by direct physical loss of or damage to property at premises which are described in the Declarations and for which a Business Income Limit of Insurance is shown in the Declarations. The loss or damage must be caused by or result from a Covered Cause of Loss.
Furthermore, the property polices either have the CP 01 40
“Exclusion of loss due to virus or bacteria” B. We will not pay for loss or damage caused by or resulting from any virus, bacterium or other microorganism that induces or is capable of inducing physical distress, illness or disease.
or the LMA 5018
“Microorganism exclusion (absolute). This Policy does not insure any loss, damage, claim, cost, expense or other sum directly or indirectly arising out of or relating to: mold, mildew, fungus, spores or other microorganism of any type, nature, or description, including but not limited to any substance whose presence poses an actual or potential threat to human health.
Some have asked about Civil Authority Clause. Again we turn to the Business Income coverage form:
b. Civil Authority
In this Additional Coverage, Civil Authority, the described premises are premises to which this Coverage Form applies, as shown in the Declarations.
When a Covered Cause of Loss causes damage to property other than property at the described premises, we will pay for the actual loss of Business Income you sustain caused by action of civil authority that prohibits access to the described premises, provided that both of the following apply:
(1) Access to the area immediately surrounding the damaged property is prohibited by civil authority as a result of the damage, and the described premises are within that area but are not more than one mile from the damaged property; and
(2) The action of civil authority is taken in response to dangerous physical conditions resulting from the damage or continuation of the Covered Cause of Loss that caused the damage, or the action is taken to enable a civil authority to have unimpeded access to the damaged property.
Civil Authority Coverage will begin 72 hours after the time of the first action of civil authority that prohibits access to the described premises and will apply for a period of up to four consecutive weeks from the date on which such coverage began.
HOWEVER, if you have an insured that would like to file a claim, please send us the Acord Property loss form and we will report it to the appropriate carrier.
We hope that you, your staff, your loved ones and colleagues are healthy during this challenging time.
At this time, our office remains open and operational. However, the safety of our employees, colleagues, and all those around us is a top priority, so we have implemented our business continuity plan. This means we have transitioned employees to be able to work from home with a small staff located in our office to provide support to those working at home. All employees have access to technology that ensures that all can fully operate in order to continue to provide you with excellent service and support – same as always.
We are committed to our partnership, and we will keep you updated in the coming weeks as we monitor the situation. Please stay safe and healthy as we move forward together!