Clarifications on Commercial Coverage as related to COVID-19
  • Post last modified:October 5, 2020
  • Post category:Insurance

[Updated on 3/24/2020] In light of recent events, we are providing this summary to ensure our agents have clear information regarding how a Utica First Artisan Contractor or Businessowner Policy would respond to events associated with a potential outbreak.

Insureds with Building and/or Business Personal Property Coverage

For those insureds that have coverage for Buildings, Business Personal Property, and/or any related property or structure.  There is no coverage for property due to the Coronavirus as the property would not have suffered any direct physical loss. 

Insureds with Loss of Income Coverage – Earnings and Extra Expenses.

There is no coverage for Loss of Income if an insured business is shut down because of the Coronavirus.  Earnings and Extra Expense Coverage only applies when there is a loss or damage to real or personal property at the described premises or within 100 feet. 

Supplemental Loss of Income Coverages – Interruption by Civil Authority

Coverage would not be provided under the Supplemental Loss of Income Coverage for Interruption by Civil Authority.  This coverage only applies if an order is a result of damage to property that is caused by a peril covered.  

Perils Excluded

The Coronavirus is a virus and as such loss, cost, or expense caused by Virus or Bacteria is an excluded peril for all types of property coverage.  

This exclusion applies to, but is not limited to, any loss, cost, or expense as a result of:

      a. any contamination by any virus, bacterium, or other microorganism;

      b. any denial of access to property because of any virus, bacterium, or other microorganism.

Perils Excluded

In the event businesses are ordered to be closed because of either a potential outbreak or an outbreak of the Coronavirus, either in or near the insured premises.

Civil Authority — “We” do not pay for loss or damage caused by order of any civil authority, including seizure, confiscation, destruction, or quarantine of property.

If you have any questions or would like additional clarification, please contact your commercial lines underwriter or field representative.

Insureds with Worker’s Compensation Coverage

For those insureds that have worker’s comp coverage and whose employees are all working from home, there is no need to endorse specific locations to the comp policy unless the employee’s home is in a state which is not on the policy.