Coronavirus (COVID-19) News/Links/Updates

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.    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.”






  • 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.