To say that business owners are concerned about the coronavirus (COVID-19) pandemic is an understatement. Many business owners are actually panicking as the virus is yet to be contained. More businesses are still shutting down either as a result of the supply-chain disruption, low-patronage, or government orders. If you are considering the possibility of shopping for a new insurance policy that will cover the pandemic and its aftermath, you are not alone. Even business owners with some meaningful policies are eager to know if what they have provids real cover, or if there is a need to buy another.
The way insurance works make it unlikely for any insurer to write policy coverage for some known events, especially when the level of possible damages might not be understood easily. The menace of coronavirus falls within that area. However, insuring certain risks like business interruption as a result of the COVID-19 pandemic is possible in Excess Line market. This is not a recommended approach to take since the market isn’t well regulated.
Always Consider Market Risk when Buying a Business Insurance Policy
If you are interested in buying a business insurance policy that can cover COVID-19 in Excess Lines market, you should consider the risks in the market. It is a market that is burdened by lesser regulatory protection for customers. Again, the cost of getting such an insurance policy in this critical time can be exorbitant. The risks of an almost worthless policy are also higher in the market.
If you believe that a risky insurance coverage purchased from Excess Lines market is better than no insurance at all, you should consider buying one. It is essential, however, that you work with a reputable insurance consultant or an insurance broker.
You also need an experienced business interruption lawyer to make the right decision about the sort of business insurance to get at this critical time. A reputable attorney will consider what you have now and recommend the best approach to take.
Are your business losses covered by your current business interruption policy?
Give us a call today for a free business interruption insurance policy consultation with our experienced business interruption attorneys. We will be happy to offer legal advice on the specific situation: 954-951-0000.
