What you should know about insurance coverage and COVID-19.


It’s been a hectic couple of months for us all. The COVID-19 pandemic has affected all of us across the nation, from the way we work to shopping for groceries. Unsurprisingly, businesses and individuals alike have raised questions that we thought we would never have to ask or answer. Businesses are closing down, people are losing pay, events are being canceled, and people are staying in their homes, wondering what the business and personal implications could be for them. Below are just a few questions related to COVID-19 and how it relates to business and personal insurance.


Does business interruption insurance cover closures due to coronavirus?

Business interruption insurance is designed to cover a business’s loss of income resulting from a disaster. Where property damage only covers physical damage to a building, business loss insurance covers the loss of income during the disaster as well as the rebuilding period. Unfortunately, closures from viruses, including COVID-19, are not typically covered under business interruption insurance because it is not a covered loss.


Does commercial property insurance cover coronavirus related losses?

A commercial property insurance policy covers losses or damage resulting from incidents such as fire, theft, or natural disaster. These insurance policies often exclude loss due to a virus or bacteria, which is what coronavirus would fall into. Because of this, it is unlikely a commercial property policy would cover any COVID-19 property losses.


Does cyber insurance cover me if I am working from home on my personal computer?

Cyber insurance covers costs associated with a cyber-attack or data breach, such as hacking, phishing, and malware. Generally, a commercial policy will only cover such an incident if the business takes preventative measures to avoid a cyber-attack or data breach. Letting employees use their personal computers is not a preventative measure, and is actually an exposure making companies even more vulnerable to an attack. However, insurers may review each attack on a case-by-case basis, and could offer some assistance.


Should I put my college child back on my auto insurance policy since they were sent home from college due to COVID-19?

If your child is back from college and living in your household, you should certainly add them back to your policy. Any licensed driver living in your home should be on your auto policy. If they are not on the policy and are involved in an accident, there may be no coverage.


Have more questions about coronavirus and your insurance? Talk to the professionals at Tompkins Insurance Agencies. We are here to help.