Local Touch. Naonal Strength.™ RISK INSIGHTS If you have quesons specific to your business, or would like addional informaon, please reach out to your Mitchell & Abbo Advisor. www.mitchellandabbott.com | April 3 rd 2020 COVID-19 and Your Business Can Insurance Help? An Important Update. Many business owners are currently experiencing losses in sales and closures which may lead to quesons regarding business interrupon coverage within property policies. In March, we published a Risk Insight that noted that property insurance policies—and the resulng business interrupon coverage—require physical damage by an insured peril to trigger a claim. And, that insurers are unlikely to view the introducon of COVID-19 as a direct cause of physical loss or damage. WE NOW HAVE AN IMPORTANT UPDATE TO SHARE. On April 1, 2020, the Ontario Superior Court of Jusce released a decision finding that loss of use in itself was sufficient to trigger coverage under the insured’s property policy. This is a ground-breaking decision, however, it is unclear whether it will be appealed. While this case had no specifics regarding infecous disease, we believe that in light of the ruling, coverage for a loss resulng from a virus (COVID-19), cannot be ruled out. OUR ADVICE TO CLIENTS: If you have experienced any COVID-19 related loss, including business interrupon— with respect to the mandatory shutdown direcves, contact your insurance advisor to carefully review your policies or discuss subming a claim to your insurer. WHAT’S NEXT? This is an evolving industry-wide situaon resulng from an unprecedented event. As of today, we sll cannot say if COVID-19 claims will be covered. Coverage analysis must be based on the wording within an insured’s specific policy—and there are many nuances. However, this ruling has changed the space, and we would recommend that clients contact their insurance advisor should they feel they have a claim to submit. We will connue to track Federal and Provincial measures, and will provide updates on a regular basis to support you and your business through this pandemic. ™®Local Touch. National Strength. Navacord and Navacord logo are Trademarks of Navacord. The information contained herein is general in nature and general insurance description only. The information is not intended to be insurance advice; nor does it amend, modify or supplement any insurance policy. Consult your actual policy or your broker for details regarding terms, conditions, coverage, exclusions, products, services and programs which may be available to you. LET US HELP YOU MANAGE YOUR RISK 2000 Garth Street, Suite 202 Hamilton, ON L9B 0C1 1-800-463-5208 www.mitchellandabbo.com www.navacord.com [email protected]

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Page 1: COVID-19 and Your Businessmitchellandabbott.com/pdf/covid/2020_3_04_Risk... · RISK INIGHTS If you have questions specific to your business, or would like additional information,

Local Touch. National Strength.™

RISKINSIGHTS

If you have questions specific to your business, or would like additional information, please reach out to your Mitchell & Abbott Advisor.

www.mitchellandabbott.com | April 3rd 2020

COVID-19 and Your BusinessCan Insurance Help? An Important Update. Many business owners are currently experiencing losses in sales and closures which may lead to questions regarding business interruption coverage within property policies. In March, we published a Risk Insight that noted that property insurance policies—and the resulting business interruption coverage—require physical damage by an insured peril to trigger a claim. And, that insurers are unlikely to view the introduction of COVID-19 as a direct cause of physical loss or damage.

WE NOW HAVE AN IMPORTANT UPDATE TO SHARE. On April 1, 2020, the Ontario Superior Court of Justice released a decision finding that loss of use in itself was sufficient to trigger coverage under the insured’s property policy.This is a ground-breaking decision, however, it is unclear whether it will be appealed. While this case had no specifics regarding infectious disease, we believe that in light of the ruling, coverage for a loss resulting from a virus (COVID-19), cannot be ruled out.

OUR ADVICE TO CLIENTS:If you have experienced any COVID-19 related loss, including business interruption—with respect to the mandatory shutdown directives, contact your insurance advisor to carefully review your policies or discuss submitting a claim to your insurer.

WHAT’S NEXT?This is an evolving industry-wide situation resulting from an unprecedented event. As of today, we still cannot say if COVID-19 claims will be covered. Coverage analysis must be based on the wording within an insured’s specific policy—and there are many nuances. However, this ruling has changed the space, and we would recommend that clients contact their insurance advisor should they feel they have a claim to submit. We will continue to track Federal and Provincial measures, and will provide updates on a regular basis to support you and your business through this pandemic.

™®Local Touch. National Strength. Navacord and Navacord logo are Trademarks of Navacord.

The information contained herein is general in nature and general insurance description only. The information is not intended to be insurance advice; nor does it amend, modify or supplement any insurance policy. Consult your actual policy or your broker for details regarding terms, conditions, coverage, exclusions, products, services and programs which may be available to you.

LET US HELP YOU MANAGE YOUR RISK2000 Garth Street, Suite 202Hamilton, ON L9B 0C11-800-463-5208

www.mitchellandabbott.com

www.navacord.com

[email protected]