Communicable Diseases are dangerous to human health and are required by law to be reported to government authorities. The presence of communicable disease results in an order by a public health authority to evacuate and disinfect the premises. Unfortunately, the expense to test & clean communicable diseases can be costly, but luckily insurance policies may provide coverage.
EXTRA EXPENSE COVERAGE
When purchasing insurance, policyholders have an option to purchase additional coverage for communicable disease extra expense which amends the standardized business income and extra expense coverage form. Extra expense insurance coverage helps business owners stay in business by providing cash while the impacted property is being repaired or replaced. Coverage can include setting up a temporary office while the damaged office space is restored, rental equipment needed to continue business operations, portable generators, computer equipment and expediting expenses. Coverage can also include tests and disinfecting the premises affected by biological/viral agents of the communicable disease.
SUSPECTED PRESENCE VS PHYSICAL PRESENCE
It is important to read policies very carefully when navigating coverage for potential communicable disease losses. Other policies require direct physical loss for communicable disease coverage to kick in. Business interruption is not covered.
COVERAGE DEFINITIONS VARY PER POLICY
Recently we compared a multi-family residential building and a social service/school facility, and we realized that coverages, exclusions, definitions, and sub-limits vary between policies. Take a look at the examples below:
|Multi-Tenant Residential Apartment Building||Social Services/School Facility|
|Communicable disease may be present or suspected||Communicable disease must be present|
|We will reimburse you for the following reasonable and necessary expenses you incur due to a “communicable disease event” occurring at your premises;||Cost to evacuate the described premises.|
|The actual expense you incur to disinfect the premises of biological or viral agents of the “communicable disease”||Provide required medical tests, blood tests, doctors’ care, inoculations, vaccinations, antibiotics and/or hospitalization for infected persons other than your employees.|
|The actual expense you incur to test the covered premises to confirm that the premises have been disinfected of the biological or viral agents of the “communicable disease”.||Clean your equipment and disinfect the described premises in accordance with the jurisdictional Board of health requirements.|
|Replace consumable goods declared contaminated by the jurisdictional Board of Health.|
|Test the described premises to confirm the elimination of the communicable disease, or Obtain extra advertising to restore your business reputation.|
|Relocation expense, other than as provided under D. Tenant Evacuation and Relocation Expense of Section||Any expense that is covered elsewhere under this endorsement, policy or any other policy issued to you by us or any of our affiliates.|
|Other Property Coverage Extensions of this endorsement;||Any resulting loss of Business Income.|
|The cost of replacing actual or suspected contaminated property.||Any Extra Expense caused by or resulting from the suspension, lapse or cancellation of any license, lease or contract.|
|Fines or penalties of any kind.||Fines or penalties of any kind.|
|License, lease or contract cancellation fees; or Any liability or medical expenses.|
PROFESSIONAL POLICY INTERPRETATION
Understanding Insurance policy language is key to claim management and settlement. You don’t have to navigate the complexity alone. United Public Adjusters & Appraisers Inc. is here to guide you with a strategy that is personalized to your needs. We manage all aspects of property damage claims including Inspection, Valuation, Negotiation & Settlement. In keeping the safety of our team and customers a top priority, we are currently offering Remote Claim Assessment & Claim Management Services. Our approach is very straight forward: We offer a no-obligation, free policy, and claim review. NO PRESSURE. NO FALSE HOPE. NO RECOVERY, NO FEE! Contact us today for immediate help!
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