Most Common Concerns that People have Regarding Business Owner Policy in light of Coronavirus
SG Financial is a provider of Business Owner Policy in Dallas, Texas. We are committed to working with all businesses during these tough times. The Coronavirus Epidemic will not stop our diligent services. We make it our business to gather latest information about the disease and its impact on the market. the safety of your employees and least disruption in your business operations is our primary goal.
Acquiring Business Owner Policy Services after the Coronavirus Related Loss Takes Place
No insurance, such as Business owner policy, can be bought after the loss has occurred. Just like no car insurance will provide coverage after the accident has already occurred. There is no precedence of buying an insurance for a loss that is pre-existing. Every insurance carrier requires the buyers to sign off on a “no known losses” before a policy is issued.
Coverage provided by Business Owner Policy in Coronavirus Outbreak due to Forced Closure
Most business-related insurance policies require physical damage to the premises for coverage to be qualified. The same holds true for Business Owner Policy. Any loss from the virus, bacterium or other microorganism is usually not specifically covered in policies. However, the policies can also be modified. Riders or additional addendum’s can be added later on.
The usual Coverage Provided by a Business Owner Policy Firm
It is a bundle that covers basic insurances. Business owner policies provides protection against property damage, peril, business interruption and associated liability. The most important aspect in BOP during this outbreak will be Business Interruption coverage. Since most businesses are closed off by the orders of government.
Coverage for Business if it is Forcibly Closed by Government
If a civil authority closes off a business, not many insurances provide cover against that. Coverage is only triggered if damage to the property occurs. Disaster relief loans may provide better option to business owners. Yet, the business owner policy may provide coverage for interruption. Ask the insurance provider for more details.
Coverage for a Business Shut Down as a Preventative Measure
Most insurance policies do not provide coverage for losses occurred during voluntary temporary closure. The reason for closure, either voluntary preventative measure or by orders from civil authority, do not matter. Yet, the interruption aspect of business owner policy may cover for you in such situation.
Coverage for a Business from Reduced Foot Traffic from the Epidemic
Not even business interruption service provides coverage against reduced foot traffic. A drop in customers is not covered under necessary perils. So, the lost income will not be covered under business owner policies.
Cancellation or Loss of Travel Plans due to Coronavirus
Most insurances do not provide coverage for travel plans cancellation due to coronavirus or any other communicable disease. There are certain special event policies that can provide coverage in very specific circumstances. But those policies would have to be in place before the spread of epidemic. Though, liability portion of business owner policies may cover any lawsuit concerning negligence in exposing the virus.
Coverage of Losses Incurred due to Coronavirus
A virus is specifically not covered in any clause of business owner policy services, or any other for that matter. It is special circumstance which rarely occurs. However, the subclauses like liability and business interruption may still be valuable in current situation.
Responsibility of a Business if an Employee Contracts Coronavirus
If employee cannot prove two things, they will not be liable for coverage under business policy, or any other. These two things are;
- The disease was contracted out of employment
- The disease was contracted in the course of employment