On March 22, I wrote about what insurers can do to fill gaps created by the COVID-19 pandemic in both personal and commercial lines. On March 23, I addressed some specific personal lines issues.

Let’s not forget commercial lines coverage gaps that you may not have thought about but might now exist on the accounts of your customers and yourself.

For example, hundreds of thousands, possibly millions, of workers are now telecommuting. One agency I know has their entire staff except for one person working from home. In order to enable this, they relocated computer equipment, files, supplies, and other business property from the agency to various homes.

Keep in mind that there are a lot of policies that tie certain types of coverage to described premises like most property and business income policies and certain crime and cyber forms. Some form limit liability coverage to Designated Premises. Some property forms may have very limited coverage for property away from the premises. They also have vacancy exclusions and limitations…whether a building is now vacant depends on how that’s defined in the policy form. Business income coverage is usually triggered by damage to property at the described premises. Certain crime and cyber coverages may only be triggered if a loss event takes place from within insured premises.

Have you examined YOUR insurance portfolio for increased exposure to uninsured losses? Have you taken corrective action? If there is no viable means of insuring such losses because of product deficiencies, the coming months are the time to discuss new options that insurers may need to create in existing or new products.

It’s a new world.

 

Photo by JeepersMedia

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Bill Wilson

Founder at InsuranceCommentary.com
One of the premier insurance educators in America on form, coverage, and technical issues; Founder and director of the Big “I” Virtual University; Retired Assoc. VP of Education and Research from Independent Insurance Agents & Brokers of America. Reprint Request Information

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