Topic: Coronavirus 

Insurance for COVID-19

03 Apr 2020

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Insurance is a key component of all risk management strategies to protect the bottom line and asset base. 

As a result of the COVID-19 crisis, such strategies are being severely tested. Whether these strategies are adequate reflects on the decisions made by risk managers, directors and boards set against a background of unprecedented Governmental intervention. Wordley Partnership has been advising clients wishing to ascertain whether or not key insurances respond to COVID-19 and have shared their advice with us.  These coverages include Business Interruption, Contingent Business Interruption (Suppliers and Customers), Event Cancellation, Trade Credit, Environmental Impairment and Management Liabilities (including Directors and Officers).

Their article gives an overview of the key issues in respect of such coverages.  In respect of Business Interruption, Wordley look at whether the presence of the virus in property constitutes insured property damage and potentially applicable additional policy triggers, such as Civil Authority Orders, Denial of Access, Contagious Disease, Crisis Management, Suppliers and Customers Extensions as well as relevant exclusions such as Contamination and the application of Wide Area Damage theories to reduce the loss payable by insurers. 

In relation to all Coverages, Wordley consider the importance of complying with key terms of the relevant Policy and with Notification requirements for claims as well as the timely provision of details of the claim. They also take a detailed look at Event Cancellation policies which respond to cancellation or postponement of events as a result of causes beyond the control of the insured, as well as Directors and Officers cover for companies whose business continuity plans fall short of the mark.

Wordley Partnership are a specialist insurance coverage law firm based in London and with  affiliated offices in the United States in Chicago, Florida and Arizona. They advise on all aspects and all type of insurance and reinsurance coverage working for policyholders and cedants around the world. See for further information and further updates on Covid 19 issues including  non insurance commercial issues arising from Covid 19.

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