Insurance Coverage – Coronavirus

Mar 11, 2020

It’s nearly certain that coronavirus is filling your news feed, but have you considered that it may be possible to recover some of the cost your business endures due to this outbreak?

Our Managing Director, Chad Salsbery, has been closely following the global impact of coronavirus. Chad provides expert services in areas including insurance claims, construction claims, commercial litigation, and solvency opinions.

His perspective on the current situation is that companies need to do whatever they can to prepare and plan for the impact this virus may have on their business

A few of the more widely discussed impacts we have seen from coronavirus are the impacts to the financial markets, supply chain disruptions, reduced market demand for goods and services, and what isolation could look like for our communities.

What has been less discussed is that these financial impacts may be covered by a business’s insurance policy that includes coverage for business interruption and extra expense.

A recent Wall Street Journal article quoted Kirk Pasich, who Chad worked with on a large Hurricane Katrina insurance claim, stated:

“There is no guesswork here: There will be insurance-coverage disputes.” Mr. Pasich went on to say, “There is so much money at stake and strong differences of opinions as to whether insurance applies.”

In the same article, insurance broker Robert Lane urges his clients to “presume there is coverage.”

In a 2014 article for the American Bar Association, Chad wrote about how pre-loss insurance and accounting planning “make good business sense”.

So, what can you do amongst all the uncertainty?

  1. Review your insurance policies for coverage
  2. Implement an accounting structure that provides for the segregation of costs associated with impacts from the virus
  3. Take reasonable steps to avoid, or to minimize, impending losses
  4. Contact outside counsel to assess your coverage and obligations under your insurance policy (e.g., when you need to give notice to your carrier)

Please feel free to contact Chad with any questions you have on how to protect your business at or 616-726-2760.

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