Coronavirus In The Workplace

The rapid spread of the coronavirus has sparked alarm worldwide. The World Health Organization has declared a global health emergency and many countries are grappling with a rise in confirmed cases.  In recent days and weeks, we have received multiple inquiries related to the virus and how (if any) insurance coverage would apply.  Below are some of your questions and our responses after researching this matter.

How does Workers' Compensation respond to the Coronavirus?

Two tests must be satisfied before any illness or disease, including the coronavirus, qualifies as occupational and thus compensable under workers' compensation law:

1) illness or disease must be occupational, meaning that it arose out of and was in the course and scope of the employment

2) illness or disease must arise out of or be caused by conditions peculiar to the work

So, other than the fact that the Coronavirus is currently garnering intense attention, in most cases, it is no more occupational than the Flu meaning coverage would be unlikely dependent upon state law.

 

Business Income loss?  How would this apply if a business were required to close its doors due to the virus?

Business interruption insurance, sometimes called income loss insurance, is intended to help protect businesses against revenue losses sustained as a result of damage to insured property. Therefore, losses as a result of a virus are not typically covered. While some endorsements (add on coverage) have been adopted by the Insurance Services Office to respond to coronavirus, most insurance companies have yet to adopt that language into their policy contracts.

In short, it will depend on the specific language in your policy but more than likely, this is uncovered.

 

What should employers do?

All employers should be ready to implement strategies to help protect their workforce from COVID-19 while ensuring continuity of operations. During a coronavirus outbreak, all sick employees should stay home and away from the workplace, respiratory etiquette and hand hygiene should be encouraged, and routine cleaning of commonly touched surfaces should be performed regularly.

Employers should:

  • Ensure the plan is flexible and involve your employees in developing and reviewing your plan.

  • Conduct a focused discussion or exercise using your plan, to find out ahead of time whether the plan has gaps or problems that need to be corrected.

  • Share your plan with employees and explain what human resources policies, workplace and leave flexibilities, and pay and benefits will be available to them.

  • Share best practices with other businesses in your communities (especially those in your supply chain), chambers of commerce, and associations to improve community response efforts.

 

For further conversation on this topic, don’t hesitate to call us directly. 

Thank you, Fee Insurance Group

Sources
https://www.independentagent.com/resources/Pages/coronavirus.aspx

https://www.cdc.gov/coronavirus/2019-ncov/index.html

https://www.arcgis.com/apps/opsdashboard/index.html#/20bfbf89c8e74c0494c90b1ae0fa7b78

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