How Does Business Insurance Respond To Employers During COVID-19?

The COVID-19 pandemic is globally affecting the general public's welfare, crashing the industries, distorting the business operations, and creating insurance exposures. If you are an employer or an owner of a business, you can't help but accept the present reality and work for the pandemic's long-running effects. 
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Here are several insurance exposures linked with COVID-19 that you need to know and how different coverage categories could respond.

Interruptions on Business Operations
During a loss, business interruption insurance allocates coverage for your business's income in normal operations. This insurance also helps you pay for company expenses, such as taxes, loans, employee salaries, and rent.

Based on your insurance policies, business interruption insurance is for physical damages or losses. This thought entails that under these circumstances, COVID-19 would not count as a covered loss. However, some would argue that COVID-19 might contaminate the assembly lines or HVAC systems that will cause business operations to stop. In a situation like this, business interruption insurance can give you some protection, but a few might reject it.

Dilemmas on Supply Chain
As COVID-19 continues to increasingly impact the global economy, contingent business interruption (CBI) insurance is essential. The aspects of your supply chain get affected even if your business is not in the area identified with the coronavirus, resulting in potential distortions. CBI is your insurance option because it lets you transfer the risk of certain business losses to the third party's property.

Concerns on Liability
The coronavirus outbreak increases the number of liability concerns, specifically if your employees and customers claim that they became ill due to the business's negligence or employer. It's essential to take these following insurance considerations when concerns like these happen to you.

• General Liability Insurance
  This insurance also refers to commercial liability insurance that protects your business when you experience financial loss, and you are liable for property damages or bodily injuries.
• Directors and Officers Insurance
  Most directors and officers' insurance do not include coverage for physical injuries but may provide some protection depending on the specific claims. Significantly, you review the scope of your directors' and officers' insurance policies to validate the coverage.

Conclusion
As an employer or business owner, these are some insurance exposures and insurance types you need to evaluate and consider for your business. These considerations will guide your financial decisions in this increasingly widespread crisis.

At Old Bay Insurance Agency Inc., we do our best to make sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (410) 777-5390 or Click Here to request a free quote.