The COVID-19 pandemic has reshaped the world in ways that we’re still adapting to. From remote work to changes in healthcare, businesses and individuals alike have had to rethink their risk management strategies. As we continue to recover and move forward, understanding how insurance coverage applies to COVID-19-related incidents is more important than ever. Whether you’re a business owner, a healthcare professional, or an individual looking for peace of mind, Skyscraper Insurance is here to help you navigate these complexities.
How COVID-19 Has Affected Insurance Coverage
At the onset of the pandemic, many businesses scrambled to understand how their existing insurance policies would apply to disruptions caused by COVID-19. Coverage gaps became apparent as organizations faced unexpected closures, supply chain disruptions, and increased claims. As businesses and individuals try to rebuild, it’s essential to know how current policies can help protect against future risks related to pandemics or similar events.
Business Interruption Insurance:
One of the most common concerns during COVID-19 was whether Business Interruption Insurance (BI) would cover income loss due to mandatory shutdowns. Unfortunately, many standard policies did not include coverage for pandemics, as most BI policies are designed to cover property damage or physical loss. However, some insurers offered endorsements or expanded coverage options in response to COVID-19, so it’s crucial to check your policy and see if any pandemic-specific coverage is available.
For businesses that were forced to close or operate at a reduced capacity, it’s worth investigating whether an Extended Business Income Coverage endorsement could provide protection. This coverage helps bridge the gap if you experience a drop in revenue as a result of an unforeseen event, such as a pandemic.
Workers Compensation and Liability Insurance:
Another area affected by COVID-19 is Workers Compensation. In many industries, employees were exposed to COVID-19 in the workplace. In response, certain states passed legislation to cover workers who contracted the virus on the job. It’s important for employers to understand how their workers’ compensation policies apply and whether specific COVID-19-related claims could be covered.
For businesses that stayed open during the pandemic, or for essential workers, ensuring that general liability insurance is up to date is vital. In particular, this type of insurance may apply to businesses that are held liable for COVID-19-related health and safety violations.
Health Insurance Coverage:
On the personal side, health insurance plans were put to the test during the pandemic. From coverage for COVID-19 testing and treatment to the impact of delayed elective procedures, it’s essential to understand your health insurance policy’s limits and exclusions. Some insurers expanded coverage during COVID-19, including telehealth services, making it easier to access care remotely.
Looking ahead, it’s important to confirm that your health insurance covers potential future health crises, and whether additional pandemic-related coverage needs to be added. Many people also opted for short-term health insurance to fill any gaps in coverage that arose during the pandemic.
Preparing for the Future: Key Steps for Insurance Protection
While we may not know when the next global health crisis will occur, there are a few proactive steps that individuals and businesses can take to ensure they are better prepared:
- Review Your Current Insurance Policies:
Regularly review all aspects of your business or personal insurance, including health, property, and liability coverages. If you own a business, make sure your business interruption and workers’ compensation policies reflect your needs and any changes in operations post-COVID-19. - Explore Pandemic-Specific Coverage Options:
Some insurers have introduced specific coverage options that address pandemic-related risks. This may include more robust business interruption coverage or contingent business interruption if a supplier or key partner is affected by a pandemic. Consult with your insurance broker to explore these options. - Telehealth and Remote Work Insurance:
Telehealth services saw a boom during COVID-19, and many companies adopted remote work policies. Ensure that your health insurance plan covers telehealth and that your workers’ compensation policy includes coverage for remote employees. If you’re running a remote business, you may also need to adjust your cyber liability insurance to address new risks tied to remote work technologies. - Update Your Liability Insurance:
Ensure that your general liability policy provides coverage for any COVID-19-related claims, particularly in industries where workers or customers may be at higher risk. Consider adding additional endorsements for health and safety concerns related to pandemics. - Stay Informed About Changing Legislation:
Insurance regulations continue to evolve in response to COVID-19, particularly for workers’ compensation and business interruption claims. Stay up-to-date on any changes in state or federal laws to ensure you’re compliant and covered.
The Skyscraper Insurance Difference
At Skyscraper Insurance, we understand the complexities of navigating insurance coverage during a pandemic. Our team of experts is here to help you secure the right protection for your business, employees, and family. We offer tailored risk management solutions to ensure that you’re covered for both the expected and the unexpected.
Whether you need a review of your workers’ compensation insurance, business interruption coverage, or health insurance plans, Skyscraper Insurance is here to guide you every step of the way. Let us help you prepare for the future — and give you peace of mind, knowing that you’re ready for anything that comes your way.
👉 Contact us today for a COVID-19 insurance coverage review or to ask any questions about your policy’s pandemic-related clauses.
