By now we have seen the news and received the standard recommendation precautions of washing hands with soap and water for at least 20 seconds; covering the mouth & nose when coughing/sneezing; disinfecting touchable objects and surfaces; avoiding close contact with people who are sick; and making sure employees stay home when they are sick. https://www.phly.com/rms/blog/Coronavirus.aspx CAL will keep an active running blog on our website as insurance updates appear.
Vistage Chair and Economic Futurist, Mary O’Hara Devereaux recently discussed the following with me: “The COVID-19 is now the biggest driver of a potential global and U.S. Recession but, unless there is an explosion of cases overall and an uptick in China cases, it is not likely to drive a true recession but rather a serious slowdown. In another 4-6 weeks the picture will be much clearer but that does not mean it will not have big effects. It is more likely this will turn into a real pandemic (40%) and that U.S. cases will rise. If it does become a pandemic it is very likely to push a global and a U.S recession the first half of the year. It is important to note though that COVID-19 is disruptive more than extremely fatal. Death rates are 2% vs. SARRS at 10%. China, at the moment, is experiencing fewer new cases but COVID-19 is spreading to more and more countries and almost no region is untouched.” https://www.linkedin.com/in/maryoharadevereaux/
- Restaurants, for example, may be suffering with reservations being down and/or cancelled due to the City of SF declaring a state of emergency. The question becomes, because the mayor declared this as a state of emergency, might it trigger a “civil authority” claim under business interruption coverage? We have submitted our first claims with this angle and will update our blog as more information on this and other coverages come available.
- A recent article from Property Casualty 360 weighs in a little on this and other insurance coverages: https://www.propertycasualty360.com/2020/03/02/assessing-the-personal-impact-of-the-coronavirus/?kw=Assessing%20the%20personal%20impact%20of%20the%20coronavirus&utm_source=email&utm_medium=enl&utm_campaign=dailynews&utm_content=20200302&utm_term=pc360&enlcmp=nltrplt2
- CDC page regarding COVID-19: https://www.cdc.gov/coronavirus/2019-ncov/infection-control/control-recommendations.html?CDC_AA_refVal=https%3A%2F%2Fwww.cdc.gov%2Fcoronavirus%2F2019-ncov%2Fhcp%2Finfection-control.html
- Workers Compensation coverage for workplace exposure? https://www.workcompcentral.com/news/article/id/956216a2c684a245c462737244b619e2b510f3fe
- Our workers compensation claim & risk management partner, ESM, has just completed an Exposure Control Plan (ECP) including a training pamphlet in both English & Spanish: https://www.esminsite.com/blog/exposure-control-plan-coronavirus-preparation
- In speaking with ESM we are not aware of any work comp claim filings yet but the belief is that if a claim was filed it would be denied as it would have to be proven that being at work poses a greater risk than being in public. ESM is in the process of reaching out to a major work comp provider for their take and to see if any claims have been filed just yet.
- What sort of risk management are you taking to prepare your own business? We will add various client responses, as they become available, to the blog update. Is your organization set up to allow for remote employees should the workplace become contaminated?
- One of our clients is a specialist for onsite infection prevention & decontamination. Already this past weekend they cleaned a local school which suffered a Norovirus outbreak and a professional office for an unconfirmed case for the Coronavirus. CAL has a trusted resource should you need this type of a referral.
- Coronavirus & Employment Law: prevention/anticipation of concerns/proactive procedures https://www.benefitspro.com/2020/02/28/coronavirus-employment-law-and-you-412-94425/?kw=What%20to%20know%20about%20coronavirus%20and%20employment%20law&utm_source=email&utm_medium=enl&utm_campaign=bprodaily&utm_content=20200302&utm_term=bpro&slreturn=20200202163152
- Will the N95 Respirator Mask Protect You? https://www.health.com/condition/infectious-diseases/n95-respirator-mask-coronavirus
- General Liability and Directors & Officers coverage: A recent article published in the Insurance Journal contains a story written by Pamela D. Hans & Marshall Gilinksy (dated February 26, 2010) in which they weigh in these specific coverages. In summary they write: “While business interruption claims may, at first blush, seem the most likely to follow from the coronavirus outbreak, depending upon the claims that are asserted, insurance coverage may exist under commercial general liability, D&O, and E&O insurance coverage. Commercial general liability insurance coverage provides a defense to claims asserted by third parties for bodily injury or property damage. With some companies experiencing a drop in share price, shareholder suits and others may follow. Those claims may trigger coverage under D&O and E&O insurance policies. People who are being quarantined on cruise ships or by other private entities might have claims about how they are being treated.”
- NEW!! The cyber thieves are also trying to leverage COVID-19 for their own gain. This news story alerts employers to let employees know of potential phishing scams as the fraudsters look to trick employees into clicking on malicious links: https://www.propertycasualty360.com/2020/03/03/coronavirus-fraud-a-gcs-guide-to-potential-schemes/?kw=Coronavirus%20fraud:%20A%20guide%20to%20potential%20schemes&utm_source=email&utm_medium=enl&utm_campaign=dailynews&utm_content=20200303&utm_term=pc360&enlcmp=nltrplt2