Coronavirus: Commercial Coverage FAQs

Hummel Group recognizes the unprecedented questions the coronavirus (COVID-19) outbreak is raising for our clients, particularly questions related to business income and event cancellation losses and how policies will respond to these incidents. While one answer does not fit all circumstances, Hummel Group will take the appropriate steps to work with your insurance carriers to evaluate the coverage for a coronavirus-related claim under any insurance policy in a timely manner.

Hummel Group encourages policyholders to review their insurance policies and claim reporting requirements. The scope of coverage for claims arising from coronavirus (COVID-19) depends on the specific facts of the loss or claim, the terms of the insurance policy and the governing law of the jurisdiction in question.

Policyholders may need to make business decisions related to coronavirus, such as whether to cancel an event, close an office or shut down operations for a specific period of time. These are business decisions and should be evaluated as such, regardless of whether or not insurance coverage is applicable. It is also important to remember that Insurance policies are not standardized and forms can vary depending on the carrier providing the coverage. However, in general most property policies will not provide coverage for a loss of business income that results from a virus, outbreak, or pandemic. This is generally true whether the loss directly affects the workforce of the business, is the result of a government-issued quarantine, or affects another business or customer in the supply-chain.

If you contact the Hummel Group seeking consultation regarding the likelihood of an incident being covered that had a proximate cause of the coronavirus pandemic, realize that there are many factors to be considered, and only your insurance carrier can make the final assessment of coverage applicability. If a claim – or claim scenario – is submitted, your insurance carrier will assess and investigate the situation. If coverage applies, the carrier will pay the claim as quickly as possible.

Thank you for your business and please call your agent if you have any questions.