COVID 19
INSURANCE COVERAGE & PLAN
I will provide you with an overview of insurance coverage in light of the Covid19 outbreak specifically we're going to be talking about policies purchased by C DHA members including business interruption commercial general liability and professional liability.
What
is very much an unprecedented and ever-evolving situation it seems at every
moment.
There
are new circumstances arising and questions being posed to both us and and
widely to the insurance industry that we've never faced before.
There
are definitions and policy wordings that will be challenged in ways they have
never been through claims being put forward and challenged in courts.
We
also see expect to see new precedents, we actively work to obtain and share as
much information as possible.
We
are working around the to review and challenge policy wordings set forth by
insurers and the current definitions across a range of policies and provide
this to you.
But
as we pose new questions and seek further clarification from your insurers the
response time is being delayed given the nature of COVID 19.
The multitude of physicians taken in conjunction with the sheer volume of queries
being sent.
We
are also engaging with our legal partners such as growing's and your
association to provide timely content and value in moments of dire need.
we
have created a more formal position statement with Si DHA that has been shared
with members to provide further insight and feedback on key coverage areas
including business interruption professional liability and commercial general
liability.
We
strongly encourage you to read this which can be found on the CBH a website
because the situation is so fluid.
Unfortunately
we are unable to provide definitive answers on coverage which will ultimately
play themselves out as claims and cases arise.
We
will however provide our interpretation on a general basis to a variety of
areas that dental hygienists and other health professionals are seeking
feedback.
We will
provide more context in detail as it relates to some of the coverage’s
purchased through the CH an Insurance Program based on what we know today.
As a
new circumstances evolved we continue to create further resources to bring you
this information.
We
also strongly recommend you frequently visit your college's website as new details
come to light.
While
we continue to review policy wording some challenge definitions to try to
identify new potential avenues for coverage as the broker BMS does not
adjudicate or determine claims.
You
have a right to submit a claim which will be assessed on its own merit based on
the specific facts and circumstances of the situation.
We
anticipate the insurer or the CDJ business package ecclesiastical will release
more formal information in relation to filing business interruption claims.
May
be after some days some companies will be offering some coverage in this
circumstance release portals and undesignated channels to submit these claims.
New questions
are brought forward and circumstances involved we will provide further
resources in collaboration with si DHA please continue to monitor their website
for the latest information.
we
will now address some of those commonly asked questions I'm going to start with
business interruption coverage.
What
is business interruption covers I can provide you with some information, what is
business interruption and specifically how this is applied in the CDH a member
of policy and to give members some guidance on whether they may have a circumstance that constitutes putting forward a claim.
I
will also provide some context as it relates, obviously to COVID 19 does this
interruption and business income coverage is often included in a commercial
property policy such as the business package through si DHA.
I think it's worth noting that this coverage
is intended and is attached to a property policy instead of a loss of income
related policy.
This
provides coverage for direct physical loss or damage to the insured property
caused by a specific loss most commonly fires and storms and these are referred
to as insured perils.
In this type of scenario when a business's property suffers physical damage the business is no longer able to operate
normally and the insurer, as a result, will pay for loss of business income
and/or extra expenses incurred during this period.
This is what is referred to
as business interruption coverage within a property policy and is very much the
coverage that is in place within the CDA program.
What
is less common is what businesses are facing right now which is the actual or
potential closure due to the spread of COVID 19.
Most
property policies have an absolute virus or bacteria exclusion in them which
states that loss is caused directly or indirectly by a virus or excluded from
coverage including a business interruption related coverage in rare
circumstances.
Some
policies do right back in limited forms virus-related coverage, but they're all
subject to certain requirements and provisions within the policy and they all
differ from insurer to insure.
For
example some insurance companies who provide this coverage require that civil the authority must have mandated building closures or coverage to respond where
others merely state that if a
civil authority sends an advisory that a building should close it would
warrant a trigger for coverage now.
I'll discuss a little bit more directly about
the CDH a package policy the CDH a package policy insured again by
ecclesiastical is one of those policies.
That
does provide an element of infectious disease extension under the business
interruption endorsement.
This
is again under certain criteria and within the coverage statement that has been
developed and is posted the actual wording is attached to that as well some of
the key elements of information related to the conditions for this coverage to
be provided are as follows.
However
again as I before I do so and as noted prior each claim is really assessed on
its own circumstance and merit.
This overview is to provide you more information about the wording in general and
how it operates for CDH a members outlined in the policy wording coverage is
provided for an occurrence at the insurance premises subject to a three-months
indemnity period and a limit of $100,000 for coverage ticker be provided
conditions set out in the wording must be met the main and central
consideration in the CDH.
The wording is that a claim arises directly from the necessary interruption or
interference of operations at the insurance business or premises due to a human
in section or contagious disease.
That
is manifested by a person while at the premises which then causes restrictions
to the use of the premises on the order or advice of a civilian Authority.
So
again to provide that in maybe you know some more layman terms essentially
there has to have been a human with COVID 19 or proof that covid19 was
ultimately at the premises.
It
was manifested by a person while at the premises which would result in coverage
to be provided given advice has already been rendered by the civilian authority to
close premises.
In these circumstances, this is a central
component of the policy to review and help assess whether you may have a claim
it's also important to note that for businesses open today that circumstance
may not yet have arisen or it may arise in the future.
So
this is very much an ongoing circumstance in relation to this coverage.
There's
also, a lot about Cova 19 that we don't know including how ensures will trace
back where there has been the transmission of the virus.
What
circumstances and again this will all kind of play itself out as time evolves
in the event that the condition noted is met coverage may be afforded for items
such as loss of revenue and rental costs again.
There
is some wording that I would suggest members review but again this is the
kind of main central component of coverage there are two notable exclusions.
Which
are outlined again in that in that position statement as noted extensively in
the media, coverage for pandemics is not common in Canada most business
interruption policies do not offer coverage for business interruption due to a
pandemic such as COVID 19.
However
over 19 as I've noted is like nothing we've seen before and definitions found
insurance policies will certainly be challenged.
The
government is also in contact with Canadian jurors on this issue and there is
news coming out daily in terms of insurers' response.
There
are already examples being made which have the potential to set significant new
precedent.
There
is no requirement for physical damage but there must be a necessary
interruption of operations at the premises again as noted do to a human an infectious or contagious disease that has been manifested by a person while at
the premises.
Which
causes restrictions on the use of the premises on the order or advice of a
civilian Authority.
That
is really the most key element of the pulse wording that will identify the
likelihood of claims being afforded or not under the CBH policy.
If
no one has been at your premises with covid19 is unlikely that there will be a successful claim in relation to business interruption.
But
again I present there are asymptomatic patients there are many many unknown
circumstances.
If
you suspect someone who has been on your premises has had COVID 19 there is a
more increased potential for a successful claim.
If
other conditions are also met clickable to the wording please note that this is
general information and we're doing our best to provide this to you.
Without
knowing that each claim has to be assessed based on its individual facts if you
believe you do have a claim the information on how to submit is included within
the position statement which is available on the CDH a website.
We
understand and recognize the significant impact that restrictions related to covid19
are having on small businesses including CDH members whose independent practice
owners and the evolving challenges that occur with this.
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