Accessing Coverage
• Is direct physical loss or damage required?
• Does presence of virus qualify as physical damage
• Contingent/dependent property losses
• Civil authority
• Ingress/Egress
• Service interruption
• Virus Exclusions
Coverage Obligations
Don’t lose coverage because of an oversight!
• Timely notice
• Protect evidence, including computer information and e-mails
• Responding to insurers/outside adjusters
• Proof of claim compliance
• Preservation of property (sue and labor)
• Avoidance of voluntary payments
• Independent appraisal (sometimes)
• Statutory/contractual limitation of action periods
Determining Whether Losses May Be Covered:
Step One
• Was virus present on property?
• Did the government order your property to be closed?
• Did the government restrict access to your property?
• Are contingent business interruption (CBI) coverages in place for both direct CBI and indirect CBI events?
• Does policy explicitly exclude viruses?
Step Two: Considering Claims
• In-house Team
• Risk Manager, Claims Manager, Safety Manager, Corporate Counsel, Operations, Finance, IT
• Outside Experts
• Brokers/Claims Advocacy (consultants), Forensic Accounting, Claims Engineering, Legal
• Buildings, equipment, inventory
• Sublimits: debris removal, expediting expense
• Exclusions: nuclear, environmental
Time Element Losses
• Business interruption/mitigating costs
• Inefficiencies and additional costs to operate = extra expenses
• The loss results in a suspension of operations at a location of supplier and customer
Time Element Extensions
• Extended period of indemnity
• Contingent time element/CBI
• Service interruption
• Ingress/egress, (civil and military authority)
Soft Costs
• Delay
• Loss of Use
• Loss of Market
Key Takeaways
You will be faced with an event... it’s just a matter of time:
Be prepared
• Review coverage
• Have your team in place
• Have your facts and evidence in place
Be Proactive
• Take charge of the claims process
Differences are inevitable
• Assess your options
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