The new coronavirus is still making victims as we speak. Because this virus spreads so quickly, the government took measures to prevent it from affecting even more people. However, things are a little tough for business owners, as the business insurance may not always cover losses if the virus is detected on-site.
As you were probably able to tell for a while, the pandemic is affecting pretty much everyone, and businesses are not an exception to the rule. If anything, they are the ones fearing losses from coronavirus, and unless they have a MyKeyManInsurance.com business insurance, they may be at a disadvantage.
If you own a business and don’t know how the coronavirus will affect it and how business insurance works in this situation, here is some information.
Interruption of the business
The business may be interrupted due to the pandemic – but it all depends on the type of business you own. Therefore, you may be wondering whether you will receive coverage for your interruption, as part of the insurance policy. However, while there are some happy cases, the insurance will not always cover for a business’s interruption.
You need to check the wording on the insurance document and see exactly what it says. If there is any benefit, then there should be a section talking about the benefits you would be getting for the outbreak.
Direct and indirect effects on the company
Your business may be affected directly or indirectly by COVID-19 and the lockdown enforced as a result. In case you were directly affected by it, then getting covered by your insurance will be much easier. This is something that could happen if your business had to be shut down to help contain the new virus, for example.
In reality, though, most businesses are affected indirectly by COVID-19. Being indirectly affected includes scenarios like having absent staff, losing customers, or not being able to get the goods that you need due to trading restrictions at the moment. If this applies to your business, then it will be harder to get coverage for these consequences.
Events being cancelled
If you were supposed to hold any event after the outbreak began, it’s very likely that it was cancelled. So, if this happened, you may expect your business insurance to cover for this. But just like in the case of the business interruption, you need to look over the insurance policy and see if the wording implies you will be covered for this.
Make sure that it specifies coverage in cases of pandemics, viruses, bacterial infections, contagious diseases, disease outbreaks, or anything of the sort.
Is it still worth having an insurance for your business?
Considering the insurance will only work in special situations, you may be thinking that getting one is not worth it. However, you should have one because it may still help with a few aspects related to the coronavirus. For example, even though you may not have anything that qualifies for coverage at the moment, you may still be subject to risks such as vandalism, theft, or any other similar damage. Therefore, having insurance may still be beneficial to you.
At the same time, there are a few concerns with insurances – in certain situations, the coverage may be restricted if you’ve been away from your premises for a while. If this is something that is mentioned on your insurance policy, you may still have the benefit of the insurer automatically extending the number of days for the insurance coverage. Otherwise, make sure to contact your provider and find out if you’ve gone over the number of days.
Does insurance coverage still offer benefits if you’re working from home?
Insurance coverage may still be available depending on the nature of the job and the owner of the equipment. But it’s best to look over the policy and make sure you’re covered.
As long as you have a business that you run from home, then you should be covered according to the terms on the insurance policy. It’s the same if you’re a sole trader operating from home.
However, things may be a little different if you just had to move some of the equipment into your home to be able to work remotely while the virus is forcing places to close. Make sure to talk to your insurer and make the proper adjustments to your insurance.
The coronavirus lockdown is affecting many businesses, and it’s important to know how and if your business insurance will cover this situation. We hope our article helped clarify the matter.