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Businesses face many new risks when returning to work during the COVID-19 pandemic. As a result, you may be wondering whether your general liability insurance will cover these new scenarios. To ensure you’re protected during the changes ahead, consider the following risks and coverage limitations.

How Has COVID-19 Increased Liability Risks for Businesses?

If an employee or customer believes you haven’t protected them from COVID-19 exposure or have failed to warn them about heightened risks, such as if a staff member is infected, they might make a premises liability claim. Similarly, negligence claims may be filed for the same reasons.

insuranceIf your business advertises the steps it’s taking to keep employees and visitors safe, you may also be opening yourself to claims over false advertising. Even if you’re taking steps to prevent exposure to COVID-19, making any guarantees could put you at risk for liabilities.

Does Your General Liability Insurance Provide Sufficient Coverage?

Typically, general liability insurance covers your business against third-party bodily injury and property damage, reputational harm, and advertising injury. However, the COVID-19 pandemic isn't a result of your business' property or policies, and thus doesn't fall into a coverage category. Further, in some plans, there are communicable disease exclusions. As a result, although decisions will vary based on the specifics of your policy and the claim, general liability insurance typically won't provide sufficient coverage.

Consider additional policies, such as property insurance, for increased coverage in the face of COVID-19 risks. For example, if your business has been closed for weeks due to federal or local guidelines, and you return to find it vandalized or damaged, your property insurance may provide coverage.

 

For comprehensive and reliable insurance for your business, contact IGO Insurance in Raleigh, NC. For over five decades, this agency has worked to find policies ideally suited to your needs. They work with over 15 reputable carriers to provide a range of policies including auto, business, life, and health insurance. Call (919) 782-1560 to speak to their knowledgeable staff about the coverage you’re looking for, and go online to learn more about their business and commercial insurance options.

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