Amazing Facts About General Liability Insurance in Corona virus Outbreak
Usually, the commercial policies which need clarification in corona virus outbreak are Workers’ Compensations and Business Interruption Policies. General Liability Insurance may not be as much important in this pandemic, but it has its own share of significance. There will be individuals who will seek compensation if they were injured, died or they had a business shut down due to owner’s illness or death. People will certainly seek this compensation through general liability insurance, including the cost of defense.
Damage Criteria for General Liability Insurance
General liability insurance is a regarded as a generalized policy. People may seek compensation through this policy for; (A) Property Damage, (B) Personal or Bodily Injury and (C) Medical Payment.
The term Property Damage refers to any physical injury to tangible property. It also includes loss resulting from the damaged property.
The term Bodily injury refers to injury, sickness, or disease sustained by a person, including death.
The damages must occur during the policy period for a claim to have a chance at success. Bodily injury is easy to prove by the claimant. They can merely show proof of first treatment or first manifestation of injury/disease.
Where Do Damages Caused by Corona virus Stand in General Liability Insurance
Most general liability policies carry a principle called the mold exclusion. This refers to both fungi and bacteria. Any bodily injury or illness resulting from exposure to said bacteria or mold is excluded from this policy. However, Corona virus is neither mold nor fungi; it is a virus. There is another exclusion for pollution in the policy. But corona virus does not qualify as pollution either because of a lack of chemical or heavy metal contamination. There are no usual exclusions which might apply to corona virus except the communicable disease exclusion. But that is extremely rare.
i) Scenario (A)
The bodily injury must be caused by occurrence of some factor. It could be because of repeated exposure or a standalone accidental exposure to the stimulus. The term accident is defined as an unforeseen event that occurs without the will or design of an individual. Its effects are usually unpredictable. The exposure to corona virus on a property, accidental or otherwise can only be construed as an unforeseen event causing bodily injury. Thus, the insurance company would be liable to pay in Coverage Scenario (A) of general liability insurance.
ii) Scenario (B)
The Coverage Scenario (B) of general liability insurance refers to the personal injuries sustained due to some external cause. This scenario provides coverage in instances such as false arrest, detention or imprisonment, wrongful eviction, libel, slander, or disparagement of goods and services. Due to corona virus outbreak, the only scenario that would be relevant in this coverage would be a claim of false or wrongful detention. This would refer to any forceful quarantine imposed on actual or suspected carriers of the disease.
iii) Scenario (C)
Coverage Scenario (C) of general liability insurance might also prove to be useful during the coronavirus outbreak. There might be third party expenses; caused by an accident on the insured’s premises or due to the insured’s operations. Such as delivery drivers, construction workers on project sites etc.
It is critical that you review all the policies and coverage’s available in the market which may be of assistance to you. Corona virus is undoubtedly a heinous disease which has halted businesses almost the world over. Your coverage’s must reflect the effects of this pandemic during this tough time.
Get Access to General Liability Insurance
SG Financial Inc. is the best insurance carrier to provide general liability insurance in Dallas, Texas. Avail our services and keep your business alive. Your decisions right now might determine the whole future of your enterprise. Precaution is better than twiddling thumbs.