Insurance and Risk Management

A hotline has been set up for clients to contact us and talk through the challenges you may be facing. If you are in a financial bind, we will provide some initial guidance in relation to credit & finance, supply chain, insurance, restructuring, real estate and construction related matters so together we can work out what your best options are. The number is (02) 8281 7980. You can also visit our online COVID-19 resource page.

 

19 March 2020 - Katherine Ruschen

Many businesses are struggling to come to grips with current and expected losses and potential liabilities arising from COVID-19, including whether they are covered by any of their insurance policies. The question of coverage is also complicated for insurers in these uncertain times. With so many varying circumstances and obligations we have compiled the below checklist to assist organisations to assess what insurance they have in place and how to manage their business risks.

Your COVID-19 Insurance Checklist:

1. Consider and determine the risks that could affect your business: identify essential goods, materials and services supply chains and assess the potential for disruption of those supply chains and the impact to your business. Identify the impact on your contractors and customers and identify the potential sources of liability, if your business is impacted by COVID-19.

2. Obtain complete copies of your insurance policies, including the PDS or policy wording, any extensions or endorsements, the insurance schedule and the certificate of insurance.

3. Review your insurance policies, in particular:

  • Review any first party property and business interruption policy to determine whether coverage might be available if your business is disrupted.

  • Consider the risk of claims against directors, officers or senior managers for failing to implement an adequate response to COVID-19 to protect the business and whether your directors and officers liability, management liability or professional indemnity policy will respond.

  • Implement record keeping procedures that will assist to determine whether any workers compensation claim is work-related.

  • Review your general liability insurance to determine whether coverage might be available for liability to third parties for bodily injury or property damage arising out of COVID-19 related circumstances.

  • Are you able to claim cancellation costs for any cancelled travel under your travel insurance?

  • If you need to cancel events, are you covered by event cancellation insurance?

4. Review your contracts to ascertain the extent to which you are required to insure subcontractors, head contractors or joint venture partners and if so, whether there is a risk this might include COVID-19 related claims. Check your policies to ensure compliance with any contractual obligation to insure another.

5. Consider whether you need to notify an insurer of a claim, potential claim or circumstances that might give rise to a claim now or in the near future.

In these times we need to be able to collaborate to get through, so if you would like to have an initial chat to triage your current situation we will consider this a value-add for our current client base.

Resource links for further reading:

https://disasters.org.au/current-catastrophes/2020/3/11/cat203-covid-19-virus

https://www.afr.com/companies/financial-services/coronavirus-declared-insurance-catastrophe-20200311-p548y2