COVID-19 An Insurance Perspective
by Graham Slater | May 27, 2020 | Latest Industry News
COVID-19 An Insurance Perspective As you can imagine I have had numerous calls / emails regarding what action club owners should take in response to the virus. I have been addressing each person individually and of course this isn’t sustainable so I will generate a number of posts / email blasts to keep people in the loop. Some questions - # Can you claim on business interruption Insurance? # Can you get a rebate on your insurance when members drop? # Will you be liable if anyone catches the virus from your business? Before I go into the questions, I thought I should just state the obvious – we haven’t faced anything that has impacted the world like COVID-19. There is no absolute plan, the so called medical experts / scientists are shooting from the hip and their findings / protocols are changing by the hour. There are still many unknowns or outcomes that people don’t want to put their names too – How long does the virus live outside the body? It has been stated anything from 2 hours – 9 days but we can’t find a unified definitive answer. Whatever it is, it’s too long. INSURANCE BUSINESS PACKS # You can’t claim losses incurred by a drop in membership due to a virus. A business pack that includes business interruption can only be claimed upon if you have a disruption by damage to the property (fire / water etc) leaving you unable to operate. BEING SUED FOR INFECTED SOMEONE WHO VISITED YOUR CLUB # Can anyone claim they caught the virus from your business and sue you for compensation? Facts are it has never been done before mainly because we have never faced claims arising from this event. Your insurance policy does not have a provision to defend you against compensation claims brought about by someone stating they contracted COVID-19 at your facilities. My belief is that no Insurer would create a policy to protect people against COVID-19 or any other virus. It would also be near impossible to prove without a doubt, that someone contracted the virus from your business. Think of it this way, do you know of any successful lawsuits awarded to people who have caught the flu from someone. I think we can move on from this. # REBATE FROM STUDENTS CANCELLING OR SUSPENDING MEMBERSHIPS Unfortunately there isn’t a provision for a rebate when students cancel or suspend their memberships through the term of your insurance. You are not charged for new students joining your school through the year, so it works both ways, no rebates when they leave. If you are coming up to renewing your insurance, you should consider the current situation when calculating member submissions to the insurer. If any of you have any questions you can either drop them in the feed or PM me. I will endeavour to answer them as quickly and as accurately can NEXT POST – STAY OPEN OR CLOSE!