With COVID-19 continuing to have an unprecedented effect on the business operations of all ABD clients, the availability of insurance for pandemic-related losses is at the forefront of our minds. While there is still speculation on the potential outcome of COVID-19 related claims, we suggest notifying your carrier of any current or potential claim is the most prudent course of action at this time. Timely reporting is critical to preserving your rights under your policy(s).
Factors to Consider when Providing Notice to Your Carrier(s)
> What type of loss have you sustained?
Consider the questions below to determine your next step:
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- Have you suffered a loss of revenue 1 or additional expenses due to the coronavirus?
- Did you close your location due to a "shelter in place" order 2 or contamination?
- Did any of your foreign locations 3 close due to a “shelter in place” order?
- Did a business in your supply chain cease operations due to a “shelter in place” order or contamination?
- Has access to your premises 4 been denied for a reason other than a “shelter in place” order or contamination of your premises?
Click here to report a Property (BI) Claim
Click here to request a member of your ABD Service Team reach out to you to discuss filing a COVID-19 related Property (BI) Claim
Click here to view a guide on documenting BI losses from our partners at rwhMyers
1 Most property policies require an actual loss of income. The intent of the policy is to replace lost net income that the insured would have earned if the loss did not occur. Pre-revenue companies may not trigger this coverage.
2 A Shelter in Place order may trigger Civil Authority Coverage. This coverage typically applies when a civil order prohibits access to the insured business.
3 Some policies contain “political risk coverage” which may address actions taken by foreign governments.
4 Inaccessibility to the insured premises due to a covered cause of loss on a 3rd party’s property may trigger Ingress/Egress Coverage.
5 Business Income coverage generally covers the loss of income that a business sustains due to a suspension of operations as a result of direct physical loss, damage, or destruction to insured property by a covered cause of loss (i.e. peril). These policies contain two conditions precedent to coverage being afforded: 1) the loss must arise from a covered peril; and 2) the peril results in the direct physical harm/loss to property. There must also be an actual, tangible, monetary loss. Policies often contain exclusions for viruses, bacteria, pollutants, contaminants & diseases. There are also questions around whether a virus can cause loss or damage to property. Coverage will ultimately depend on the facts of the claim, the policy language, and applicable laws in your jurisdiction. In addition, legislation is under consideration in some states that may compel coverage, without regard to existing policy exclusions.
This policy will cover the insured for defense and damages owed to a 3rd party for bodily injury or property damage caused by an occurrence (i.e. accident). Included are allegations of accidental injury resulting from dangerous conditions on the premises as well as injury resulting from the use of insured’s goods (products liability may be provided under a separate policy for some insureds).
Keep in mind that coverage is not triggered without a demand. This is also an occurrence-based policy, so notice is only required after a demand is received.
Consider the questions below to determine your next step:
- Have any allegations of bodily injury or property damage to a 3rd party (non-employee) been made against you, your company, or any employee?
- Have any allegations been made against your company by a 3rd party (non-employee) alleging you are in some way responsible for causing others to contract COVID-19? Examples include:
- Failure to adequately clean your business premises
- Failure to adhere to recommended guidelines
- Failure to prevent infected patrons from entering your premises
Click here to report a General Liability Claim
Click here to request a member of your ABD Service Team reach out to you to discuss filing a COVID-19 related General Liability Claim
This policy responds to allegations of wrongful acts (discrimination, wrongful termination, harassment, retaliation) arising from the employment process including layoffs. This is a claims-made and reported policy meaning you are required to immediately notify your carrier as soon as practicable within the policy period when a claim is made.
Consider the questions below to determine your next step:
- Have any current or former employees made allegations for discrimination, wrongful termination, harassment or retaliation in relation to any COVID-19 measures you may have taken?
- Have any current or former employees made allegations for failure to provide requisite notice prior to conducting terminations or furloughs?
- Have any current or former employees made allegations for wage-and-hour violations (failing to provide wages or overtime, proper payroll statements, meal or rest breaks)?
Click here to report an Employment Practices Liability Claim
Click here to request a member of your ABD Service Team reach out to you to discuss filing a COVID-19 related Employment Practices Claim
Directors & Officers policies generally provide coverage for claims resulting from managerial decisions made by directors and officers in their capacity as a director or officer of the company. This is a claims-made and reported policy meaning you are required to immediately notify your carrier as soon as practicable within the policy period when a claim is made.
Consider the questions below to determine your next step:
- Have any demands been made against a director or officer for a breach of a fiduciary duty in relation to the COVID-19 pandemic?
- Have any demands been made against the company, or directors or officers, for unreasonable actions (or inaction) in response to the COVID-19 pandemic? Examples include improper disclosure of prospects, financial condition, and planning; representations of supply chain or continuity planning; cybersecurity risks with remote access devices.
Click here to request a member of your ABD Service Team reach out to you to discuss filing a COVID-19 related Directors & Officers Liability Claim
Cyber policies are highly customized and no two are exactly alike. Generally, a cyber policy covers certain 1st and 3rd party losses resulting from a data breach, security failure, or extortion threat. Expenses for crisis management, fraud response, public relations, forensics and legal are typically covered. This is a claims-made and reported policy meaning you are required to immediately notify your carrier when a claim is made.
Consider the questions below to determine your next step:
- Do you suspect a hack?
- Have any of your employees been victim to a malware or phishing scam?
Click here to request a member of your ABD Service Team reach out to you to discuss filing a COVID-19 related Cyber Claim
Errors & Omissions policies are highly customized and no two are exactly alike. Generally, an Errors & Omissions policy covers damages arising from any actual or alleged negligent act, error or omission in the offering of your product or services. Most policies have an exclusion for bodily injury but may cover financial losses. This is a claims-made and reported policy meaning you are required to immediately notify your carrier when a claim is made.
Consider the question below to determine your next step:
- Have any allegations been made against your company arising from your performance of services or the performance of your goods?
Click here to request a member of your ABD Service Team reach out to you to discuss filing a COVID-19 related Errors & Omissions Claim
Each state has its own respective Workers' Compensation insurance laws. Workers' Compensation provides benefits to employees for occupational injuries and illnesses that arise out of and occurred during the course and scope of employment. Each jurisdiction will evaluate compensability of claims based on the facts of each case. A few states have passed recent legislation adding a presumption of compensability for COVID-19 claims, to apply to specific classes of workers with a higher risk of exposure.
Consider the question below to determine your next step:
- Have any employees alleged contracting COVID-19 while at work?
Click here to request a member of your ABD Service Team reach out to you to discuss filing a COVID-19 related Workers' Compensation Claim
Property & Casualty insurance is an umbrella term used to describe all different types of insurance products designed to protect your company’s assets. While the links above address some of the standard coverages maintained by most ABD insureds, it is not an all-inclusive list. We know that a large number of you maintain other types of insurance as well.
Click here if you have suffered a loss or received a demand related to COVID-19 under a line of coverage not listed on this site and would like tto request a member of your ABD Service Team reach out to you to discuss filing a notice on that line of coverage.
Claim Forms (by Coverage)
> What if you don't have a claim at this time?
Submitting a notice of claim is a condition precedent to receiving coverage under any policy. Failure to report a claim in accordance with the policy requirement can result in a claim being denied. Most property policies require the insured provide “prompt” notice while other policies may require notice “as soon as practicable” or within a certain number of days after knowledge of the claim.
But what if you don’t have a claim (as defined by each policy) at this time?
There may be instances where you have not suffered a loss or received a demand related to COVID-19, but expect you may in the future. In that case, you may want to explore the possibility of filing a notice of circumstance with your carrier.
Submitting a notice of circumstance allows the insured to give notice to the carrier of facts and circumstances that it reasonably expects to give rise to a claim in the future. The effect of that notice is that, if a claim comes later, even after the expiration of the policy period, the claim when tendered to the carrier may be considered made when the original notice of circumstance was given if the carrier agrees that the facts of the actual claim mirror those described in the notice of circumstance. If used appropriately, the notice of circumstance provision potentially preserves the current coverage for future claims. Note that reporting a circumstance is not a guarantee that the carrier will agree a future claim aligns with what was reported in the notice of circumstance.
Filing a notice of circumstance can be complex and have significant unintended consequences if not done appropriately. If your policy renews in the next 2 months, it is important to discuss the possibility of filing a notice of circumstance with your attorney in conjunction with your ABD Service Team.
Click here to request a member of your ABD Service Team reach out to you to discuss filing a Notice of Circumstance> What can you expect from ABD?
If you request that a member of your ABD Service Team reach out to you regarding your coverage, they will respond to you as quickly as possible. If your need requires immediate attention, please reach out to your ABD Service Team member directly.
We ask for your patience and understanding during this time and just know we are here to advocate for you in any way we can.
Other than claims for Workers’ Compensation coverage which must be self-reported directly to your carrier, each of the links provided above will take you to a fillable Claim Form that can be uploaded directly to our claims team. Once ABD has received your claim form submission, we will promptly provide notice to your carrier on your behalf. We will let you know once this is done via an e-mail acknowledgement of notice from claims@theabdteam.com. Carriers typically acknowledge receipt of a claim within a few days and will subsequently assign a claim number and an adjuster. ABD will provide that information to you if the carrier has not done so directly. The adjuster will then begin investigating the loss and will likely reach out to you for additional information, if needed. ABD will monitor the claim’s progress and will update you with any significant developments through conclusion.
While our goal is to ensure all claims are handled in a timely and efficient manner, carriers are currently experiencing an unprecedented claims volume and the expectation is it will only get worse. We anticipate the adjustment of claims may take longer than normal. We ask for your patience and understanding during this time and just know we are here to advocate for you in any way we can.